On April 30, 2020, the Federal Reserve System, in conjunction with the U.S. Department of the Treasury, released updated guidance outlining the parameters of a program to support lending to small- and mid-sized businesses by eligible lenders. The April 30 guidance expands on and, in several areas, supersedes prior materials published on April 9.
Known as the Main Street Lending Program (the Program), this initiative establishes new loan facilities for entities (1) with up to 15,000 employees or (2) whose 2019 annual revenue was less than $5 billion, regardless of employee headcount. The Program’s loan facilities can take the form of either new loans (a Main Street New Loan Facility or a Main Street Priority Loan Facility) or expansions to existing loans (a Main Street Expanded Loan Facility). These facilities are “designed to provide support to small and medium-sized businesses and their employees across the United States during the current period of financial strain by supporting the provision of credit to such businesses.”
Continue Reading Newly-updated Main Street Lending Program implicates key workplace-related considerations for U.S. employers