Since the Federal Reserve's announcement on April 9 of the
rollout of its Main Street Lending Program1, lenders and
borrowers have eagerly anticipated additional guidance on key
aspects of the program. On April 30, 2020, the Federal Reserve
announced it is expanding the scope and eligibility for the Main
Street Lending Program and provided additional guidance as to its
administration, including FAQs and updated
term sheets. Key highlights of these materials are set forth
below. Full materials can be found on the Federal Reserve's
website.
The three central changes to the program are:
- The announcement of a new loan
option, the Main Street Priority Loan Facility, which provides a
loan option for more highly leveraged borrowers but requires
increased risk sharing by participating lenders
