Pub. 10 2020-2021 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S July • August 2020 7 the prior 12 months, including all full-time, part- time, seasonal, or otherwise employed persons (but not volunteers or independent contractors). The business will also need to include those employed by its affiliates in accordance with the affiliation test set forth in 13 CFR 121.301(f) (1/1/2019 ed.).  Revenues may be determined in one of two ways: • The business and its affiliates’ annual “revenue” per its 2019GAAP auditedfinancial statements. • The business and its affiliates’ annual receipts for the fiscal year 2019, as reported to the IRS, with “receipts” having themeaning used by the SBA in 13 CFR 121.104(a).  Most recent audited financial statements or annual receipts may be used if a borrower or one of its affiliates does not yet have audited financial statements or annual receipts for 2019. • The businessmust be able tomake all of the certifications and covenants required under the Program. See the term sheets for the three Main Street facilities and a summary below. 4. What are the terms of the Eligible Loans under the Program? The main differences between the facilities are where they fit in with an Eligible Borrower’s existing debt, the allowed leverage of the Eligible Borrower, and the amount that may be borrowed. • MSNLF: New loans that may be unsecured or secured, first or second lien. Available to Eligible Borrowers with lower leverage ratios. • MSPLF: New loans that may be unsecured if the Eligible Borrower has no secured debt other than mortgage debt; otherwise they must be secured and meet certain collateral coverage tests. If the loans share collateral with other debt, they must be senior to or pari passu with that debt. Available to Eligible Borrowers with higher leverage ratios. May be used to refinance existing debt with lenders other than the Eligible Lender. • MSELF: Loans made as an increase (or “upsize”) to an Eligible Borrower’s existing credit facility. They may be unsecured if the Eligible Borrower has no secured debt other than mortgage debt, otherwise, they must be secured. If the underlying loan is secured, the upsize tranche must be secured on a pari passu basis with the underlying loan (or the term tranche, if there is both a term tranche and a revolving tranche). Available to Eligible Borrowers with higher leverage ratios. 5. What are the terms of the Eligible Loans under the Program? The basic terms of the three facilities are found on the following chart (see page 8).