(as of June 8, 2020)
The Main Street Lending Program is a $600 billion program established by the Federal Reserve to support lending to small- and medium-sized business that were in sound financial condition before the onset of the Covid-19 pandemic. The program will be offered through three different facilities: the Main Street New Loan Facility, the Main Street Priority Loan Facility and the Main Street Expanded Loan Facility. The loans are five-year loans, with principal deferred for two years and interest deferred for one year (unpaid interest will be capitalized). The facility stops purchasing the loans from Eligible Lenders on September 30, 2020.
The program will be administered through Eligible Lenders which are U.S. federally-insured depository institutions (including banks, savings associations, and credit unions), U.S. branches or agencies of foreign banks, U.S. bank holding companies, U..S savings and loan holding companies, US intermediate holding companies of foreign banking organization or any US subsidiary of any of the foregoing. At this time, non-bank financial institutions are not considered Eligible Lenders.
Borrowers, if they qualify, may take advantage of any one of the three facilities or the Primary Market Corporate Credit Facility, but not more than one. However, borrowers who have received PPP loans are permitted to borrow under this program. Borrowers are expected to make commercially reasonable efforts to maintain their payroll and retain their employees during the time the loan is outstanding.