FRB Expands Scope Of Main Street Lending Program

The Federal Reserve Board ("FRB") revised its Main Street Lending Program (composed of the Main Street New Loan Facility, Main Street Expanded Loan Facility and Main Street Priority Loan Facility) to expand the scope of small- and medium-sized businesses eligible to borrow under the program.

As previously covered, the Main Street Lending Program is intended to facilitate the implementation of the Small Business Administration's Paycheck Protection Program. Based on comments received since first implementing the Main Street Lending Program, the FRB made several updates, such as:

• providing a third loan option that increases risk-sharing and allows lenders to retain a 15 percent share on eligible loans, an increase from the original five percent;