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On June 15, the Federal Reserve’s Main Street Lending Program became operational to support small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic.
Under the program, the Federal Reserve will support up to $600 billion of loans to eligible small and medium-size businesses. The loans will be made by federally insured banks and savings associations and credit unions that apply to participate in the program. The minimum loan amount is $250,000, and the program is currently available until September 30, 2020.
Eligible borrowers are for-profit U.S. businesses (including partnerships, LLCs, corporations, trusts, joint ventures, and cooperatives) with 15,000 or fewer employees and for-profit businesses that had 2019 annual revenue of $5 billion or less. The Federal Reserve is currently considering expanding eligibility to certain nonprofit organizations, including tax-exempt organizations under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code. NAR will be submitting a comment advocating for expansion to 501(c)(6) organizations and encourages state and local associations to do the same via the feedback form by June 22.
For more information, check out NAR’s Main Street Lending Program Quick Reference Guide.