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Resources on Federal Loan Programs

Last Updated - May 18, 2020
MEMA staff contacts Bill Frymoyer or Ann Wilson.

General Information

MEMA's Summary of H.R. 748 - Coronavirus Aid, Relief, and Economic Security​ (CARES) Act

  • Includes descriptions of federal loan programs and tax provisions under the act.

MEMA Webinar “Small Manufacturers:  What the Stimulus Provides for You” (PPP)

Small Business Administration (SBA) – Small Business Guidance and Loan Resources

MEMA Webinar “Understanding the Main Street Lending Program of Treasury and the Fed”

  • The April 14 webinar from MEMA and Arent Fox delved into the basic parameters of the Main Street Lending Program, run jointly by the U.S. Treasury and the Federal Reserve. The program is designed to provide loans and loan guarantees to assist companies weather the economic crisis caused by the COVID-19 pandemic.

  • Speakers included Marwa Hassounpartner, Amal Dave, partner, Arent Fox, and Ann Wilson, senior vice president, government affairs, MEMA.

Comparison of SBA Loan Programs and Employee Retention Tax Credit

CliftonLarsonAllen (CLA) ​– COVID-19 Decision Tree

  • CLA developed a chart to assist businesses in determining eligibility for the SBA's Paycheck Protection Program (PPP), the Economic Injury Disaster Loan Program (EIDL), and Employee Retention Credit

SBA Paycheck Protection Program (PPP)

The Small Business Administrations’ (SBA) Paycheck Protection Program (PPP) provides cash flow assistance through federally guaranteed loans to small businesses, which can include motor vehicle parts manufacturers with up to 1500 employees depending on business type.

UPDATE (May 13) - The U.S. Department of Treasury published new guidelines stating that “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith,” Borrowers who request more than $2 million in loans will be subject to SBA review. Those borrowers “may still have an adequate basis for making the required good-faith certification, based on their individual circumstances,” but if deemed otherwise in the review, “SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness.”

You can view the SBA’s Frequently Asked Questions document here.

SBA Economic Injury Disaster Loan Program (EIDL)

Federal Reserve Main Street Mid-Size Business Loan Program

  • Federal Reserve Expands Main Street Lending Program Eligibility

    • ​​Date: April 30, 2020

Today the Federal Reserve announced an expansion of the Main Street lending program by increasing eligibility levels for companies to participate. Now companies of up to 15,000 employees or $5 billion in revenue are eligible to participate, compared with eligibility for companies of up to 10,000 employees or $2.5 billion in revenue under the initial program. Loan amounts can range from $500,000 to $25 million for four-year loan programs under the New and Priority Loan Programs. Now the Fed has created an additional third category, a New Expanded Loan Program, if financial institutions determine that they can assume greater risk for a potential customer in return for greater leverage over the company. That loan figure is $10 million to $200 million. 

Revised term sheets for this Main Street Program are included in the release. The Fed noted that launch of the overall program “will be announced soon.” 

Here is a link to the Federal Reserve’s Press Release:​​

Term sheet: Main Street New Loan Facility (PDF)

Term sheet: Main Street Priority Loan Facility (PDF)

Term sheet: Main Street Expanded Loan Facility (PDF)

Main Street Lending Program Frequently Asked Questions (PDF)

Employee Retention Tax Credit
Employee retention tax credit is available for employers subject to closure due to COVID-19 (permits fully refundable 50 percent tax credit applicable to the employer’s share of payroll, includes health benefits). Credit is available to employers whose businesses were disrupted due to virus-related shutdowns and firms experiencing a decrease in gross receipts of 50 percent or more when compared to the same quarter last year

Families first Coronavirus Response Act and Refundable Tax Credit
The Families first Coronavirus Response Act (FFCRA) provides small and mid-size companies the option of paying workers for up to two weeks of Paid Sick Leave or up to an additional 10 weeks of Paid Family Medical Leave. Companies participating in this program would be eligible for a refundable tax credit.

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