As part of its broad effort to support the economy, the Federal Reserve is expanding the scope and eligibility for the Main Street Lending Program. The program is designed to help credit flow to small and medium-sized businesses that were in sound financial condition before the pandemic. The availability of additional credit is intended to help companies maintain their operations and payroll until conditions improve.
The Main Street Lending Program program offers 4-year loans, with floating rates, and principal and interest payments, to assist businesses facing temporary cash flow interruptions. The loans range from $500,000 to $200 million to support a broad set of employers. The program is aimed at lending to entities that are too big for the Small Business Administrations’ Paycheck Protection Program and too small for other emergency credit facilities. Mississippians should note that:
Main Street Lending differs from other programs because loans must be repaid, and they require both the borrower and lender to be eligible for this program.
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.