Fed Revises Terms For Main Street Loan Program

The Federal Reserve Board ("FRB") revised the terms of its Main Street Lending Program ("MSLP") to expand access to MSLP loans for smaller businesses. Specifically, the FRB helped smaller businesses gain access to MSLP loans by (i) reducing the minimum loan size for three Main Street facilities available to both for-profit and non-profit borrowers and (ii) excluding Paycheck Protection Program ("PPP") loans totaling less than $2 million when determining the maximum loan size.

The FRB reduced the minimum loan size of the Main Street New Loan Facility, Main Street Priority Loan Facility and Nonprofit Organization New Loan Facility from $250,000 to $100,000. For the three facilities, the FRB also adjusted the associated transaction, loan origination, and loan servicing fees for businesses that apply for loans of less than $250,000.