COVID-19 - The Main Street Lending Program: Federal Reserve Adjusts Program to Better Target Smaller Businesses
The Main Street Lending Program (“MSLP” or the “Program”) is a financial assistance program established by 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 (the “Expanded Facility”). A special purpose vehicle (“SPV”) formed by the Federal Reserve will purchase 95% participations in these loans. Please consult our previous Client Alerts for additional details on the Program terms previously announced.
On October 30th, the Federal Reserve announced some adjustments to the terms of the Program to better target support to smaller businesses, as discussed in greater detail here.