Main Street Lending Program Changes Loan Terms to Benefit Small Businesses
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.
In the meantime, please feel free to reach out to Andy Leffler, Laura McKinney, or your relationship attorney to discuss the Program or any questions you may have.
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The material in this publication was created as of the date set forth above and is based on laws, court decisions, administrative rulings, and congressional materials that existed at that time, and should not be construed as legal advice or legal opinions on specific facts. In some cases, the underlying legal information is changing quickly in light of the COVID-19 pandemic. The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, a lawyer-client relationship. Please contact your legal counsel for advice regarding specific situations.