United States: COVID-19: Federal Reserve announces expanded scope, eligibility and revised details of Main Street Lending Program

In brief

Analysis of the expanded scope and eligibility requirements for the Federal Reserve’s Main Street Lending Program.


Contents

On 30 April 2020, the Federal Reserve announced it is expanding the scope and eligibility for its Main Street Lending Program, which is intended to provide credit to small and medium-sized US businesses that were in sound financial condition before the COVID-19 pandemic.

The Federal Reserve stated that, following public comment on the initial set of terms for the Main Street program, it had decided to expand the loan options available to businesses and increase the maximum size of businesses that are eligible for support under the program.

The Main Street program now includes a third loan facility, the Main Street Priority Loan Facility, in addition to two facilities previously announced, the Main Street New Loan Facility and the Main Street Expanded Loan Facility. The Federal Reserve provided a term sheet for the new Main Street Priority Loan Facility and revised term sheets for the New Loan Facility and the Expanded Loan Facility, and provided a set of frequently asked questions (FAQs) covering all three loan facilities.

Authors: José Antonio Morán, Craig Roeder, J. Brooke Mestre, Matthew Nochowitz and Carlos Suarez.

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