The Federal Reserve yesterday launched its expanded Main Street Lending Program through the Federal Reserve Bank of Boston to provide another level of assistance to help small and medium-size businesses weather the coronavirus pandemic.
The Main Street lender portal is now open for lender registration, and the Main Street Lending Program Forms and Agreements are now available.
Announced back on June 8, the changes include:
- Lowering the minimum loan size for certain loans to $250,000 from $500,000;
- Increasing the maximum loan size for all facilities;
- Increasing the term of each loan option to five years, from four years;
- Extending the repayment period for all loans by delaying principal payments for two years, rather than one; and
- Raising the Reserve Bank’s participation to 95% for all loans.
The Main Street Lending Program was established with the approval of the Treasury Secretary and with $75 billion in equity provided by the Treasury Department from the CARES Act.
