On June 8, 2020, the Federal Reserve Board (the Board) announced changes to certain primary loan terms for the Main Street Lending Program. These changes are intended to allow more small and medium-sized businesses to participate. The Board lowered the minimum loan amount to address concerns of small businesses that, while eligible otherwise, did not qualify for the lower lending thresholds of the Main Street Lending Program. Other changes were made to respond to concerns that the terms of the program were still not financially attractive enough in the face of an expected slow economic recovery period across most industries. Per the Federal Reserve Board’s press release, the below table summarizes the changes announced:
The Federal Reserve Board continues to provide that the start date for the Main Street Lending Program is imminent, and we will release an alert as soon as that occurs.