The Federal Reserve Board originally established the Main Street Lending Program to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. 

The good news is that the Federal Reserve has announced it is further expanding the scope and eligibility for the Main Street Lending Program as anticipated. In response to public input, the Board decided to expand the loan options available to businesses, and increased the maximum size of businesses that are eligible for support under the program. Because the Board recognizes the critical role that nonprofit organizations play throughout the economy, it is evaluating a separate approach to meet their unique needs.  Details will be forthcoming.

The changes to the Main Street Lending Program include:

  • Creating a third loan option, with increased risk sharing by lenders for borrowers with greater leverage
  • Lowering the minimum loan size for certain loans to $500,000
  • Expanding the pool of businesses eligible to borrow – so that businesses with up to 15,000 employees or up to $5 billion in annual revenue are now eligible

With these changes in place, the program will now offer more options to a wider set of eligible small and medium-size businesses.

Here are some resources that provide further details:

We will share additional information as it becomes available.