FRB Amends Terms of Main Street Loan Program
On June 8, 2020 the Federal Reserve Board made changes to the Main Street Loan Program to enhance the terms of the loans available under the program. The purpose of the program is to provide further financial assistance to U.S. businesses adversely impacted by the COVID-19 pandemic. The new changes include:
- The term of all loans was extended to five years with principal payments being deferred for the first two years. Interest continues to be deferred for the first year.
- The minimum loan amount for New Loan Facilities (NLFs) and Priority Loan Facilities (PLFs) was reduced to $250,000.
- The maximum loan amounts for NLFs, PLFs and Expanded Loan Facilities (ELFs) increased to $35,000,000, $50,000,000 and $300,000,000, respectively. The 35% of current debt maximum loan limit for ELFs was deleted.
There were no changes to Borrower eligibility.