May 25, 2020

Federal Reserve Still Working On Main Street Lending Program

While U.S. businesses continue to wait for the Federal Reserve’s Main Street Lending Program (MSLP) to be operational, there was somewhat good news last week.

In a virtual U.S. Senate Banking Committee hearing,Federal Reserve Chair Jerome Powell testified that the Fed is “preparing to launch” the program soon. When Sen. Pat Toomey (R-Penn.) asked when the MSLP will be operational, Powell said it should be ready to go by the end of May or early June. When it is operational, the MSLP will provide up to $600 billion in low-interest loans to businesses with fewer than 15,000 employees.

While businesses wait for the program’s launch, they should click here to use the U.S. Chamber of Commerce’s guide to check eligibility, calculate borrowing parameters (loans start at $500,000), and learn how to apply for one of the program’s three new lending facilities.

The Fed has issued term sheets for the New Loan, Expanded Loan, and Priority Loan facilities, as well as a comprehensive FAQ document explaining the MSLP. Information, including the program launch date and application procedures, will be on the Fed’s Main Street page when it is available.