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As the effects of Coronavirus continue to unfold, we have seen small and medium-sized businesses take a hit. The government has worked to create funding to support these businesses during this tough time.
Today, Monday, June 8, 2020, the Federal Reserve Board decided to expand the Main Street Loan Program to give small and medium-sized businesses the ability to receive support. The Main Street Lending Program should be open soon for lender registration. Some of the recent changes include:
Jerome H Powell, the Federal Reserve Chair, explained this decision by saying “supporting small and mid-sized businesses so they are ready to reopen and rehire workers will help foster a broad-based economic recovery.” These businesses are essential to the economy and employment in the United States.
When a lender registers for the MSLP, they are encouraged to start making loans immediately. This program is intended to purchase 95% of eligible loans, if documentation is complete and the transactions are consistent with the Main Streets facility’s requirements. Loans originated under the previous terms will be accepted if they are funded before June 10, 2020.
There are a few loan options available within the Main Street Lending Program. These options include:
Are you applying for a loan in the Main Street Loan Program? Download our Main Street Loan Toolkit to help you qualify, apply, and secure your loan! For more information on our COVID-19 Resource, visit our site.
See the FED press release here:
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
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