- Federal Reserve Board has released new terms regarding Main Street Lending Program
- Goal is to make loan more accessible for smaller businesses
The Main Street Lending Program was announced in April with the intent of providing loans to larger borrowers (companies with less than $2.5 billion in revenue in 2019) which were deemed ineligible for the Small Business Administration and US Treasury’s forgivable PPP loan. Thus far, Main Street has made over 400 loans; as of October 30, just $3.7 billion of the Program’s allotted $600 billion has been spent. This small percentage, barely scratching the surface of Main Street’s predicted expenses, has catalyzed the Federal Reserve Board (FRB) to reassess the loan’s structure and limitations.
With goals to make the Program more accessible for more small businesses and not-for-profit organizations, the FRB announced new terms for Main Street at the end of last month.
- Minimum loan amount reduced from $250K to $100K for 3/5 Main Street loan facilities
- Transaction fees waived for loans under $250K
- Updated FAQ from The Fed & Treasury clarifying the exclusion of larger PPP loans (up to $2 million)
Additionally the Fed shared updated term sheets for modified main street facilities.
- Main Street New Loan Facility
- Main Street Priority Loan Facility
- Nonprofit Organization New Loan Facility
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Associate, Creative Solutions
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