FED Expands Main Street Lending Program for SMEs to Ease COVID Impact
FED expanded its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The key changes involve lowering the minimum loan amount for certain loans to USD 250,000, increasing the maximum loan limit for all facilities, adjusting the principal repayment schedule to begin after two years, and extending the term to five years, thus providing borrowers with greater flexibility in repaying the loans. FED expects the program to be open for lender registration soon and to be actively buying loans shortly afterward.
The Main Street Lending Program was established with the approval of the Treasury Secretary and with USD 75 billion in equity provided by the Treasury Department from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program consists of Main Street Expanded Loan Facility, the Main Street New Loan Facility, and the Main Street Priority Loan Facility, the terms sheets for which have also been published. FED extensively sought feedback and revised the Main Street Program accordingly. The Main Street Lending Program intends to purchase 95% of each eligible loan that is submitted to the program, provided that the required documentation is complete and the transactions are consistent with the requirements of the relevant Main Street facility. The program will also accept loans that were originated under the previously announced terms, if funded before June 10, 2020. Non-profit organizations also play a critical role throughout the economy; therefore, FED is working to establish a program for these organizations as well.
Related Link: Press Release
Keywords: Americas, US, Banking, COVID-19, Credit Risk, CARES Act, SME, Loan Repayment, Main Street Lending Program, FED
Featured Experts

Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Related Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.