- Additional loan facility aims to support businesses who did not receive PPP funding
- Different loans will be made to businesses up to 15,000 employees, $5 billion in revenue
- Program is backed by Federal Reserve and was created by the CARES Act in March
After a two month wait, the Federal Reserve rolled out its long-anticipated Main Street Lending program on Monday morning. The program, which was created under the CARES Act in late March, will plan to use its $600 billion of established funding to assist both small and medium-sized businesses who may have gotten shut out or were not eligible for funding under the Paycheck Protection Program (PPP). The Main Street Lending Program will offer three different categories of loans to businesses with up to 15,000 employees and $5 billion in annual revenue. The loans will range anywhere from $250,000 to $300 million.
Similar to the other relief programs set up under the CARES Act, such as the PPP, as well as those already offered by the EIDL, the Federal Reserve has put out extensive guidance on the Main Street Lending Program, including qualifications, terms, and conditions, loan covenants, etc. While financially attractive to many in need of the support as the Coronavirus pandemic lingers, applicants should be extensively aware of their commitments under the Main Street Lending Program.
To review the full arsenal of information surrounding the new Main Street Lending Program, visit our DSJCPA COVID-19 Information Center or call our offices at (516) 541 – 6549 to speak to a Coronavirus Response Team (CRT) member who can walk you through the details and how they affect your business at greater length.
Chief Business Officer, Disaster Relief Consultant
516-541-6549 | Email