Fed expands Main Street Lending Program
On June 8, the U.S. Federal Reserve expanded its Main Street Lending Program to allow more small businesses to receive financial support. The Main Street Lending Program (MSLP) was established by the Federal Reserve and the U.S. Treasury under the CARES Act to support small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic.
Among the changes, the Fed lowered the minimum loan amount and raised the maximum loan limit. It also extended loan terms to five years from four years and will allow businesses to defer principal payments for the first two years of the loan, instead of the first year. The expanded MSLP will also accept loans that under the previously announced terms, if funded before June 10, 2020.
Unlike the popular Paycheck Protection Program for small businesses, the MSLP’s loans cannot be forgiven. However, the latest changes are designed to make the program attractive to a wider range of small businesses.
The MSLP is open to companies with up to 15,000 employees or less than $5 billion in revenue last year. Small businesses that have received PPP loans are permitted to borrow under the Main Street program.
The AAA leadership and staff will continue to tirelessly advocate for the much-needed relief to ensure that our members can keep their doors open, receive the equipment necessary to protect their staff, and the resources to provide excellence in mobile healthcare. We will keep you abreast of our advocacy efforts as well as changes to the MSLP as soon as the details become available.