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The Main Street Lending Program

The Main Street Lending Program

| June 16, 2020

As businesses begin the process of reopening their doors after the COVID-19 shutdown, many have considered turning to the Federal Reserve’s Main Street Lending Program for aid. Announced on March 23, the Program’s goal is to help businesses weather the pandemic and the subsequent economic effects.1 However, recent changes to the Program may make it even more attractive and useful to business owners.

A Flexible Fed
Just as America has adapted to the challenges of the pandemic, so too has the Federal Reserve. Recently, the Fed expanded the Main Street Lending Program’s scope by lowering the minimum loan size to $250,000, extending loan terms to five years, and raising the maximum loan size.2

New Loan Types
It’s important to note that these loans are being offered by bank lenders, not the Fed itself. To sweeten the deal further, the Fed and the U.S. Treasury will shoulder the majority of risk associated with lending, making lenders more likely to approve loans for those who need it most. The Fed will offer three different types of loans with new maximum amounts:

  • New loans - $35 million maximum
  • Priority loans - $50 million maximum
  • Expanded loans - $300 million maximum3

For some business owners, the Main Street Lending program may be a low-risk, “stop-gap” measure to help with any sudden dips in consumer spending. Let us know if you would like to chat about how this could help you or someone you know.


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The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.