Federal Reserve's Main Street Lending Program Accepting Applications
Dear Members:
The Federal Reserve is offering a new program that may help your business called the Main Street Lending Program.
The Main Street Lending Program is designed to help credit flow to small and medium-sized businesses that were in good financial condition but now need loans to help until they have recovered from, or adapted to, the impacts of the pandemic. The availability of additional credit is intended to help companies maintain their operations and payroll until conditions improve.
How it Works
Loans originated under the program have several features that will help businesses facing challenges. The program offers 4-year loans, with floating rates, and principal and interest payments deferred during the first year to assist businesses facing temporary cash flow interruptions. The loans range in size from $500,000 to $200 million – a wide range that may support a broad set of employers.
It is important to note that Main Street Lending differs from other programs because the issued loans must be repaid, and require both the borrower and lender to be eligible to participate in the program.
Getting Started
To get started, businesses can review the program parameters prior to approaching a lender, and visit the
borrower’s page
for additional information. Lenders interested in the program can start at the
lender’s page
,
where operational information will be posted as it becomes available.
There are three free upcoming opportunities to learn more. These opportunities are being offered by the Federal Reserve of Boston, but they are open to businesses from any location. Reserve your spot in one of them below:
