Fed starts signing up lenders for Main Street loan program

The U.S. central bank opens registration for lenders who want to participate in its Main Street Lending Program.

Intended for companies that were in good shape before the pandemic but may need access to capital to retain employees and fund operations, the program will offer up to $600B in loans through participating financial institutions.

It will be available to U.S. businesses with up to 15K employees or with revenue up to $5B.

Lenders must register using the Fed's lender portal and are encouraged to start making program loans "immediately."

The Boston Fed has set up a special purpose vehicle to buy participations in loans originated by eligible lenders. Lenders will retain a percentage of the loans.

The program will operate through three facilities: the Main Street New Loan Facility, the Main Street Priority Loan Facility, and the Main Street Expanded Loan Facility.