COVID-19 – The Main Street Lending Program: Federal Reserve Board Revises Key Terms of Main Street Lending Program
The Main Street Lending Program (the “Program”) is a financial assistance program established by the Board of Governors (the “Board”) of the Federal Reserve System to support small and medium-sized businesses affected by the COVID-19 pandemic. The Program authorizes eligible lenders to originate up to $600 billion in eligible loans through three separate facilities - the Main Street New Loan Facility (the “New Facility”), the Main Street Priority Loan Facility (the “Priority Facility”), and the Main Street Expanded Loan Facility (“MSELF”). A special purpose vehicle (“SPV”) formed by the Federal Reserve will purchase 95% participations in these loans. Please consult our previous Client Alerts on the April 30th Program Guidance and May 27th Program Guidance for additional details on the Program terms previously announced.