WASHINGTON—The Federal Reserve Board has further adjusted the terms of its Main Street Lending Program.
In a statement the Fed said it has made changes in “two important ways” to better target support to smaller businesses that employ millions of workers and are facing continued revenue shortfalls due to the pandemic.
In particular, the minimum loan size for three Main Street facilities available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000 and the fees have been adjusted to encourage the provision of these smaller loans, the Fed stated.
The Fed and the Treasury Dept. also issued a new frequently asked question clarifying that Paycheck Protection Program loans of up to $2 million may be excluded for purposes of determining the maximum loan size under the Main Street Lending Program, if certain requirements are met, which should also help smaller businesses access Main Street loans.
Loan documents reflecting the new terms are expected to be available to registered lenders within the week, the Fed said.
To date, the Main Street program has made almost 400 loans totaling $3.7 billion, providing support to businesses from a wide range of industries, the Fed noted.