Federal Reserve creates Main Street Lending Program to support small and mid-sized businesses

On 9 April 2020 the Federal Reserve announced that it has established the highly anticipated Main Street Lending Program (Program) under which it will purchase up to US$600 billion in loans.

Simultaneously with this announcement, it published the term sheets for two facilities under the Program: the Main Street New Loan Facility which applies to new eligible loans (made after 8 April 2020) and the Main Street Expanded Loan Facility which applies to the upsized tranche of eligible loans that existed before 8 April 2020. The Treasury announced its approval of the Program and that it will make a US$75 billion equity investment to back the facilities. To do this, it will use the Exchange Stabilization Fund under Section 4027 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Read More: Federal Reserve creates Main Street Lending Program to support small and mid-sized businesses


Download PDF Back To Listing
Loading data