About It
The Main Street Lending Program is run by the Federal Reserve System to support small and medium-sized businesses and non-profit employers impacted by the COVID-19 pandemic.
The program makes available $600 billion in loan facilities to employers, who must have been in good financial standing prior to the onset of the COVID-19 crisis. To encourage banks to lend, the Federal Reserve will buy 95% of new or existing loans to qualified employers, while the issuing bank will keep 5% to discourage irresponsible lending. In exchange for the loan, employers must make reasonable efforts to maintain payroll and retain workers.
