Federal Reserve Board Adjusts Terms Of Main Street Lending Program

I. Background

On October 30, 2020, the Federal Reserve Board adjusted various terms of three facilities under the Main Street Lending Program ("MSLP") to reduce minimum loan sizes available for borrowers and alter the fee structures.1

II. Minimum Loan Sizes

The minimum loan sizes offered under three of the MSLP's facilities originating loans, namely the Main Street New Loan Facility ("New Loan Facility"), the Main Street Priority Loan Facility ("Priority Loan Facility"), and the Nonprofit Organization New Loan Facility ("Nonprofit New Loan Facility"), have each been reduced to $100,000 from the original $250,000 requirement. The Federal Reserve Board indicated in its press release that this change was instituted to better target support to smaller business. The revised Term Sheets relating to the New Loan Facility, the Priority Loan Facility, and the Nonprofit New Loan Facility are attached to this memorandum as Annexes A, B, and C.