The Federal Reserve Bank (the “Fed”) and the U.S. Department of the Treasury (the “Treasury”) announced preliminary details for the Main Street Lending Program (the “MSLP”) on April 9, 2020. Additional details and guidance as well as updated terms were provided by the Fed on April 30, 2020 after the Fed received more than 2,200 letters from businesses, individuals and non-profits providing questions and feedback regarding the proposed program. Under the MSLP, three new loan facilities (the “Facilities”) will be created that will enable lending to small and medium-sized businesses by eligible lenders. The combined size of the three new Facilities will be up to $600 billion. The following is a Q&A summary of the MSLP. The MSLP is not yet open for loan applications. The terms of the MSLP remain subject to ongoing adjustments by the Fed and the Secretary of the Treasury (the “Secretary”).
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