Small businesses barred from a 2nd PPP loan can apply for MSLP loan


Although small businesses who’ve already received and spent their PPP loans can not apply for a second one, they can apply for a Main Street Lending Program (MSLP) loan, according to Guam Congressman Michael San Nicolas.

The Payroll Protection Loan program, which is administered by the Small Business Administration, provides a one time loan to small businesses to help them keep their employees on the payroll. Companies can not apply for a second loan.

However, “there is an alternative” for small businesses wrote San Nicolas on his U.S. House website page. “”We have confirmed via the Financial Services Committee that even if you received a PPP loan, you are still eligible to apply for a Main Street Lending Program (MSLP) loan.”

San Nicolas says that the MSLP is better suited to help businesses seeking financing to carry them over longer periods.

  • No principal payments for 2 years and interest deferred for 1 year;

  • Interest floating rate = LIBOR + 300 basis points (currently 0.57% + 3.0% = 3.57% );

  • Minimum loans are for $250,000, with maximum as high as $35 million or 4x 2019 EBITDA less existing access to credit;

  • Loan durations for 5 years no prepayment penalties. Unlike PPP these loans must be paid back regardless of rehiring.

MSLP loans should be offered by participating financial institutions on Guam, who may apply to offer these with the Federal Reserve.

Local lenders retain 5% of any MSLP loan with 95% retained on the FEDs books, reducing MSLP impact on financial institution capitalization ratios.

San Nicolas encourages those seeking more details to contact the District Office here on Guam at 475-6453 or email at