The U.S. Federal Reserve has reduced the minimum loan-level from $250,000 to as low as $100,000 in its Main Street Lending Program to support small and mid-sized firms hit by the pandemic, according to the Fed’s press release. Fed will also waive the 1% transaction fee for loans below $250,000 to boost the smaller firms’ participation in the lending program.
- The Paycheck Protection Program loans of up to $2 million may be excluded in determining the maximum loan size under the Main Street Lending Program.
- The Main Street Lending Program offers several five-year loan options, with the deferred principal and interest payments for qualified entities
- The Main Street Lending Program lends to small and midsized for-profit and nonprofit organizations that were sound before the pandemic but lack credit on reasonable terms.
- The lending program has made almost 400 loans totaling $3.7 billion to entities in a wide range of industries.
- The Main Street Lending Program has faced criticism in the past that Fed has focused on large corporations than small businesses
The dollar index is gaining as stocks lose. DXY is up 0.07%, SPY is down 1.39%
