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June 15, 2020

Main Street Lending Program Will Eventually Provide Aid To More Businesses

The Federal Reserve is inching closer to the launch of its Main Street Lending Program, or MSLP. On June 8, it announced that it will expand MSLP to allow more small and medium-sized businesses to be able to receive support.

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 percent for all loans.

The same day, the Fed released updated program term sheets and a frequently asked questions document.