Insights

Update on Main Street Lending Program

The Federal Reserve announced it is expanding the scope and eligibility of its upcoming Main Street Lending Program, which will facilitate $600 billion of lending to small and medium-sized businesses under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The Main Street New Loan Facility (MSNLF), Main Street Priority Loan Facility (MSPLF) and Main Street Expanded Loan Facility (MSELF) will now be open to companies with up to 15,000 employees and $5 billion in revenue. Originally, the Federal Reserve had announced limits of 10,000 employees and $2.5 billion in revenue.

The minimum loan size has also been lowered from $1 million to $500,000 for new and priority loans. Expanded loans will start at a minimum of $10 million.

The Federal Reserve also confirmed it is developing a separate approach to these lending facilities specific to nonprofit organizations.

These changes were made in response to feedback received from 2,200 individuals, businesses and nonprofits on the program's initial details. An FAQ, term sheets and other program information can be found on the Federal Reserve website.

If you have any questions about the Main Street Lending Program's loan terms, eligibility and application process, please contact your Grassi advisor or our Crisis Response & Recovery hotline at 212.223.6216 or response@grassicpas.com.

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