Main Street Lending Program

Main Street Lending Highlights

The Federal Reserve is currently seeking feedback through April 16 on the Main Street Lending Program for companies:

  • with up to 10,000 employees OR
  • less than $2.5 billion
  • created in the U.S.

by offering

  • 4-year loan
  • Principal and interest payments deferred for one year
  • Prepayment permitted without penalty

if you

  • take out the minimum loan size of $1 million and no more than $25 million
  • make reasonable efforts to maintain payroll and retain workers
  • don’t use the funds to pay off other debt
  • put payments into the highest priority for repayment
  • don’t reduce lines of credit
  • attest the funds are needed due to COVID-19

This list is not complete. Please discuss details with your lender.

How it Adds to the SBA Loans

The Main Street Loan can be issued by a lender:

  • as a new loan 
  • can be used to increase the size of existing loans
  • can be in addition to the PPP (payroll protection program)

Financial institutions retain 5% share, selling 95% to the Main Street facility, which will purchase up to $600 billion of loans.

Other Components:

  • Sets up a lending program for state and local governments NOTE: no community in our area qualifies due to it being for cities with populations of 1 million and counties with populations of 2 million 
  • Expands funding of student, auto and credit card loans to include commercial mortgages and other business loans. 
  • Increases the amount of funding for corporate bonds and broadens the support for companies whose credit ratings have been downgraded due to the crisis.

Post expires at 9:36am on Saturday April 25th, 2020