Another Step Closer To Fed’s Main Street Lending Program
Last week, the Federal Reserve Bank of Boston opened lender registration for the Main Street Lending Program (MSLP), which will provide loans to businesses with up to 15,000 employees or $5 billion in annual revenues. After registering with the Fed, lenders will be able to make loans ranging in size from $250,000 to $300 million to businesses impacted by COVID-19.
While the MSLP is not yet fully operational, on a call for borrowers last week, Fed officials encouraged potential borrowers to start contacting their lending institutions to apply. (MSLP loans will flow through lenders, rather than the Fed.) Click here for general information about the program here for information for borrowers. The Fed also has provide these frequently asked questions (FAQs).
As a reminder, On June 8, the Fed announced that it will expand the MSLP to allow more small and medium-sized businesses to be able to receive support. Those changes included:
- 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 percent for all loans.
The same day, the Fed released updated program term sheets.