FED updated forms, instructions, and a questions and answers (Q&A) document for the capital assessments and stress testing reports (FR Y-14A/Q/M). Also update were the reporting forms and instructions for the FR 2590 report on single-counterparty credit limits, or SCCL. In addition, FED updated the frequently asked questions (FAQs) to clarify expectations of the Board and the Department of Treasury regarding lender underwriting for the Main Street Lending Program. The revised FAQs emphasize that lender underwriting should look back to the borrower's pre-pandemic condition and forward to the post-pandemic prospects. The FAQs also clarify supervisory expectations for lenders originating Main Street loans.
The Federal Reserve Bank of Boston anticipates that the Main Street program will begin accepting loans made to multiple co-borrowers when that functionality is deployed in September 2020. In anticipation of that added functionality, the updated FAQs also include details regarding co-borrower loans. The revised FAQs were developed with FDIC and OCC. The program supports lending to small and medium-size for-profit businesses and non-profit organizations that were in sound financial condition before the COVID-19 pandemic but lack access to credit on reasonable terms. The program offers several five-year loan options, with deferred principal and interest payments for qualified businesses and non-profits to allow borrowers time to recover from the pandemic.
- FR Y-14A: Reporting Forms and Instructions
- FR Y-14Q: Reporting Forms and Instructions
- FR Y-14M: Reporting Forms and Instructions
- FR 2590: Reporting Forms and Instructions
- Q&A on Form FR Y-14 (PDF)
- Reporting Form Updates
- Press Release on Main Street Lending
Keywords: Americas, US, Banking, COVID-19, Reporting, FR Y-14, FR 2590, Stress Testing, SCCL, Q&A, FAQ, Main Street Lending Program, SME, Credit Risk, Counterparty Credit Risk, Basel, FED
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