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The company will use its existing technologies and expertise to match businesses with banks
Around the US, COVID-19 has halted many citizens and businesses in their tracks. Whether its bars and restaurants or shipping companies, the effects of the pandemic have taken its toll on everyone.
The US government has stepped in, providing loans to businesses through programs like the Paycheck Protection Program and the CARES Act with the goal of helping businesses maintain employees and expenses during these times.
As part of the CARES Act, the Federal Reserve has established the Main Street Lending Program. This program sets out to provide a total of $600 billion in financing for mid-sized businesses.
There are some stipulations to the program. A company must have under 15,000 employees and annual revenues under $5 billion. The minimum loan size is $250,000 and businesses must be created or ran from the US.
According to the Federal Reserve’s website, “The Program operates through five facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), the Main Street Expanded Loan Facility (MSELF), the Nonprofit Organization New Loan Facility (NONLF) and the Nonprofit Organization Expanded Loan Facility (NOELF).”
This can all feel overwhelming for businesses looking to secure loans through the various branches of the program, but there are tools out there that should be able to guide businesses through the program a bit easier.
One such example is Celeri Network, which has announced it will assist businesses in navigating the tricky waters surrounding the Federal Reserve’s program. The company will use its existing technology to connect borrowers with regulated banks that can extend MSLP loans.
This is right in Celeri Network’s wheelhouse. The company already helps connect businesses connect with lenders, and this is a natural extension of that.
In an interview, Justin Cheng, CEO of Celeri, notes, “Because we’re set up to be able to process loans efficiently and at scale,” the company has already helped “administer some of the Paycheck Protection Program funds offered by the CARES Act.” That knowledge should also be of help here, with the MSLP loans.
(Image: Olivia Hutcherson / Unsplash)
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