Bill Perry
In response to a request for comments, NMHC and NAA sent a letter to Treasury and the Board of Governors of the Federal Reserve System regarding the Main Street Lending Program: Main Street New Lending Facility (MSNLF) and Main Street Expanded Loan Facility (MSELF) established on April 9.
Due to the scope and potentially broad reach of the program, it’s impact on the U.S. economy could be quite substantial. Given that the goal of supporting businesses is paramount to the health of the overall economy, NMHC and NAA urged the Treasury and Board of Governors to consider providing loan forgiveness similar to the forgiveness offered by the SBA Paycheck Protection Program (PPP).
“The loans from the MSNLF and MSELF facilities could become fully or partially forgivable if tied to specific business activities such as retaining employees and meeting other operational and financial obligations,” the letter read. “Rental housing providers are gravely concerned about their ability to keep up with their financial responsibilities, which remain unchanged as more jurisdictions adopt renter protections with limited relief for housing providers.”
Additionally, NMHC and NAA provided guidance on the following:
- Loan Underwriting;
- Loan Parameters; and
- Loan Use
Read our full letter to Treasury and the Board of Governors here.
NMHC and NAA stand ready to continue to work with Treasury and Board of Governors to enhance this program to ensure its maximum effectiveness for the multifamily industry. To stay up to date on the latest federal relief proposals, please visit NMHC’s COVID-19 hub.
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