In an effort to allow more small and medium-sized businesses to be able to receive support under the Main Street Lending Program, on June 8, 2020, the Federal Reserve made several changes to the Program. The Federal Reserve stated that it expects the Program to be open for lender registration soon and to be actively buying loans shortly afterwards.
The changes to the Program include:
- Lowering the minimum loan size for certain loans to $250,000 from $500,000;
- Increasing the maximum loan size for the three 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 Federal Reserve’s participation to 95% for all loans.
Learn more about the changes in our COVID-19 Alert.