Topic: General Posts

Subject: Main Street Lending
Eric Fishbein
Member: 2014
Submitted on 06-30-20 5:46 pm

Good afternoon all,


I know that the Main Street Lending program is not quite up and running yet, and was wondering what folks in The FENG were thinking about it?  What you may have heard from your bank about it?

My bank has basically said that they wont consider applications unless there are hard assets to lien against.  We dont own any real estate through the company that might be interested in the Main Street Lending program.  Thoughts or suggestions are welcome.



Eric Fishbein

David Fowler
Member: 2004
Posts: 8

Subject: Re:Main Street Lending

Submitted on 07-07-20 4:24 pm.


I'm not familiar with the Main Street Lending program but I have extensive services industries experience, including running several multi-million manufacturing and oilfield services business units.

My expereince there, and when trying to assist an associate who was looking to acquire several OFS businesses about 18 months ago, is that (while cashflow is still a key factor there in determining ability to service the debt) financial instutions are almost universally ABL focused: no asset as collateral, no funds.  

My personal opinion is that covid-19 has forced organizations to reconsider work processes and real estate needs and we shall see a reduction in demand for commercial real estate, especailly as leases come up for renewal, and banks may even significantly reduce the percentage they will allocate to such collateral just as they have historically done with AR and certainly with inventories. 

Indeed if unemployment continues and homeowners / renters (in multi-family units) struggle to make monthly payments we may see banks looking at specter of foreclosures and further erosion of collateral value. A friend was just laid off from a real estate company that is pushing to complete current projects in process and to sell off inventories of land not yet developed to generate survival critical cashflow

My associate was unable to find any funding for OFS acquisitions where any acquired assets (equipment, vehicle fleets) are limited if not already financed elsewhere; some of my banking contacts at time - despite extensive foreign investment funds some were ebing pushed to invest - were even under directions to reduce their bank's exposure to O&G sector in general (despite upstream reserves) and which more recent oil (and persistently low gas) pricing has probably only acerbated.

I'd be interested in what you are finding?

Scott Wells
Member: 2018

Subject: Re:Main Street Lending

Submitted on 07-10-20 9:43 pm.

Hi Eric - I work for Bank of America and we are participating in this program. This one is a lot different than the SBA Payroll Protection facility in that the bank will be underwriting the risk of the loan. As such, the bank will need to assess you as a borrower and consider all of the normal factors including but not limiited to financial performance/cash flow, collateral, and guarantor support. I don't know you are based, but am happy to refer you to someone to discuss the Main Street Lending Program in more detail. Feel free to reach out to me at or


Scott Wells

Andy Perz
Member: 2012
Posts: 2

Subject: Re:Main Street Lending

Submitted on 07-11-20 1:06 am.

Hi Eric, I work for a middle market debt advisory firm. I would be happy to discuss the Main Street program with you. The Main Street program differs from the Payroll Protection Program. Under the Main Street Program the loan must be risk rated pass. The loan is not forgivable. Let me know if you would like to discuss.