Fed expands Main Street program to include more small businesses

The Fed is expanding its Main Street Lending Program to allow more small and medium-sized businesses get support.

The Federal Reserve Board reduced the minimum loan amount, raised the maximum loan limit, adjusted the principal repayment schedule to begin after two years (rather than one), and extended the term to five years (from four).

Expects the lending program to be open for lender registration soon and to be actively buying loans shortly thereafter.

Minimum loan size cut to $250K from $500K.

The Main Street Lending Program will also accept loans that were originated under the previously announced terms, if funded before June 10, 2020.