Further Expansion of the Main Street Lending Program
To further assist additional small and medium-sized business, the Federal Reserve Board announced on Monday, June 8, a series of additional changes to the Main Street Lending Program (MSLP). The MSLP offers New, Priority, and Expanded Loans that meet specified length, size, and other terms as outlined by the Federal Reserve. We originally covered the MSLP
here, with a discussion of its expansion in late April
here. Please see below for several updates to these previous guidelines:
- The minimum loan size has been lowered to $250,000 from $500,000;
- The maximum loan size has been raised for each of the three loan options;
- All loan terms have been extended to five years, from four years;
- Principal payments are delayed for two years, rather than one year; and
- The Reserve Bank's participation has been raised to 95%, from 85%, which reduces the bank's risk.
Summary Term Sheets are available for each of the three loan facilities on the Federal Reserve's website
here. A handy chart summarizing this information is also available on this site. The expanded program is expected to open for lender registration soon and to be actively buying loans shortly thereafter.
We believe this reflects the most current information as of June 12, 2020. We will continue to look out for additional changes and guidance, and report them to you as they come available.
2100 Gardiner Lane, Suite 207 | Louisville, KY 40205
502-459-8100 phone | 502-459-5773 fax
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