Federal Reserve Announces $600 billion Main Street Loan Program
Published April 10, 2020
May 1, 2020 Update:
On April 30, the Federal Reserve Board of Governors (FRB) announced changes to the Main Street Lending Program, which was previously announced on April 9. In the announcement, the FRB expanded the scope of the program, and made other key changes to the program. The following link includes an outline the program we have created with highlighted changes.
In the press release, the FRB said a start date for the program will be announced soon.
On April 9, 2020, the Federal Reserve Board of Governors announced two Main Street Loan Programs, the “Main Street New Loan Facility” and the “Main Street Expanded Loan Facility,” which when combined will enable banks to lend up to $600 billion in loans to small and medium-sized businesses. On the heels of the SBA Paycheck Protection Program, these programs are geared to a wider range of businesses and covers larger businesses and larger loans.
“Main Street New Loan Facility” is for loans originating on or after April 8, 2020 and the “Main Street Expanded Loan Facility” is for loans that originated before April 8, 2020. The “Main Street Expanded Loan Facility” allows an eligible borrower to increase their existing outstanding loan amount, referred to as the “incremental loan”. Businesses are still eligible to receive loans under these new facilities if they also obtained loans under the SBA’s Paycheck Protection Program (PPP).
We will continue to monitor for updates and provide additional information when available. Frequently Asked Questions for both programs can be found at the links below: