The Federal Reserve's Main Street Lending Program supports lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic.
The program operates through three facilities: the Main Street New Loan Facility, the Main Street Priority Loan Facility, and the Main Street Expanded Loan Facility.
Term sheets for each facility and Frequently Asked Questions providing more information regarding eligibility and conditions can be found below.
- Structure. To implement the program, the Federal Reserve Bank of Boston will set up a special purpose vehicle to purchase participation in loans originated by eligible lenders. Lenders will retain a percentage of the loans. As detailed further in the term sheets, U.S. businesses may be eligible for loans if they meet either of the following conditions: (1) the business has 15,000 employees or fewer; or (2) the business had 2019 revenues of $5 billion or less. Loans issued will have a four year maturity, and principal and interest payments on the loans will be deferred for one year. Eligible lenders may originate new loans (under MSNLF and MSPLF) or increase the size of (or upsize) existing loans (under MSELF) made to eligible businesses.
- Operational Status. The Federal Reserve is currently working to create the infrastructure necessary to launch the program. Once the program is operational, small and medium-sized businesses should seek to apply through an eligible lender.