The Federal Reserve Board expanded its Main Street Lending Program to allow more small and medium-sized businesses that were financially sound before the pandemic to be able to receive support. Small and medium-sized businesses are a vital part of the economy and employ tens of millions of people. Because these businesses' needs vary widely, the Board extensively sought feedback and revised the Main Street program accordingly.
The changes include:
- Lowering the minimum loan size for certain loans from $500,000 to $250,000
- Increasing the maximum loan size for all facilities
- Increasing the term of each loan option from four to five years
- Extending the repayment period for all loans by delaying principal payments for two years, rather than one
- Raising the Reserve Bank's participation to 95 percent for all loans.