Fed moves to provide $2.3T in loans

The Federal Reserve Thursday announced additional efforts to support the economy amid the coronavirus pandemic, including providing up to $2.3 trillion in loans to households and businesses of all sizes. The Fed has taken several steps to address economic concerns and has committed to using the full range of its authorities.

Of note, the Fed created the Main Street Lending Program, which will offer 4-year loans to companies with up to 10,000 workers or revenues less than $2.5 billion. Businesses that receive loans through the Small Business Administration’s paycheck protection program can also apply for Main Street loans.

Eligible lenders under the Main Street Lending Program are U.S. insured depository institutions, bank holding companies, and savings and loan holding companies. The program is funded with $600 billion, with the Treasury Department providing $75 billion from funds allocated by the CARES Act, and is scheduled to run through Sept. 30, 2020.

The Fed will purchase 95 percent participations in the loans while lender retains 5 percent. Other terms of the Main Street loans include:


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