Skip to Content

BUSINESS UPDATE: Federal Reserve Funds Main Street Lending Program

Posted on Apr 9, 2020 - News by

Early federal stimulus efforts focused on individuals and small businesses with less and 500 employees.  By funding the Main Street Lending Program, the Federal Reserve makes $2.3 trillion available to businesses of all sizes.  In its press release, the Federal Reserve stated that the “funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.”  It went on to say that the “Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion.”

Although the program is not yet finalized, some key features include:

  • Principal and interest payments will be deferred for one year
  • Four-year maturity
  • Minimum loan of $1 million
  • Borrowers must commit to making reasonable efforts to maintain payroll and retain workers
  • Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act
  • Borrowers that have already taken advantage of the Paycheck Protection Program may also take out Main Street loans

We will update this post when the program is finalized and the public comment period expires on April 16, 2020.  Preliminary Terms sheets are available for review.  

For more information, please contact us at or at 305.670.5000. 

Markowitz Ringel Trusty + Hartog concentrates on the representation of businesses, institutions, fiduciaries, and individuals across several practice groups, which include Restructuring + Insolvency, Litigation + Dispute Resolution, Real Estate + Business, Probate + Guardianship, and Trusts + Estates. Dedication to clients and service to the community are the principles upon which Markowitz Ringel Trusty + Hartog was founded in 1980, and upon which it still operates today.