Main Street Lending Program
The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Term sheets for each facility and Frequently Asked Questions (FAQs) providing more information regarding eligibility and conditions can be found below.
- Structure. To implement the Program, the Federal Reserve Bank of Boston will set up a special purpose vehicle (SPV) to purchase participations in loans originated by eligible lenders. Lenders will retain a percentage of the loans. As detailed further in the term sheets, U.S. businesses may be eligible for loans if they meet either of the following conditions: (1) the business has 15,000 employees or fewer; or (2) the business had 2019 revenues of $5 billion or less. Loans issued under the Program would have a four year maturity, and principal and interest payments on the loans will be deferred for one year. Eligible lenders may originate new loans (under MSNLF and MSPLF) or increase the size of (or “upsize”) existing loans (under MSELF) made to eligible businesses.
- Operational Status. The Federal Reserve is currently working to create the infrastructure necessary to operationalize the Program. More information will be posted here as it becomes available regarding Program terms and how eligible lenders can sell eligible loan participations to the SPV. Once the Program is operational, small and medium-sized businesses interested in the Program should seek to apply for Program loans from an eligible lender.
- How do eligible borrowers apply? Once the Program is operational, small and medium-sized businesses interested in the Program can apply for Program loans by contacting an eligible lender. A description of eligible lenders can be found in the Program term sheets.
- What documents should eligible lenders prepare? The Federal Reserve will publicly issue a form loan participation agreement, form borrower and lender certifications, and other form agreements that are necessary to implement the Program in accordance with the term sheets. The Federal Reserve will not provide form loan documents for eligible lenders to use when making eligible loans to eligible borrowers. Rather, eligible lenders should provide these documents. Loan documents related to any loans that are participated to the SPV must reflect the terms of the Program.
Main Street New Loan Facility (MSNLF)
Main Street Priority Loan Facility (MSPLF)
Main Street Expanded Loan Facility (MSELF)
Main Street Lending Program Frequently Asked Questions (FAQs)
Reports to Congress
- Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board under Section 13(3) of the Federal Reserve Act (PDF) (May 15, 2020)
- Report to Congress Pursuant to Section 13(3) of the Federal Reserve Act: Main Street New Loan Facility (PDF) (April 16, 2020)
- Report to Congress Pursuant to Section 13(3) of the Federal Reserve Act: Main Street Expanded Loan Facility (PDF) (April 16, 2020)
- Report to Congress Pursuant to Section 13(3) of the Federal Reserve Act: Main Street Priority Loan Facility (PDF) (May 8, 2020)
Related Press Releases
- Federal Reserve Board announces it is expanding the scope and eligibility for the Main Street Lending Program (April 30, 2020)
- Federal Reserve takes additional actions to provide up to $2.3 trillion in loans to support the economy (April 9, 2020)
For inquiries regarding the Main Street Lending Program please email: email@example.com