The Federal Reserve yesterday launched its expanded Main Street Lending Program through the Federal Reserve Bank of Boston to provide another level of assistance to help small and medium-size businesses weather the coronavirus pandemic.
Announced back on June 8, the changes include:
- Lowering the minimum loan size for certain loans to $250,000 from $500,000;
- Increasing the maximum loan size for all 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 Reserve Bank’s participation to 95% for all loans.
The Main Street Lending Program was established with the approval of the Treasury Secretary and with $75 billion in equity provided by the Treasury Department from the CARES Act.