The U.S. Federal Reserve (Federal Reserve) announced revisions to the Main Street Lending Program (Program) to facilitate lending to small and medium-sized businesses by eligible lenders. A copy of the announcement is available here.

The U.S. Department of Treasury, using funds appropriated under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will invest $75 billion in a special purpose vehicle (SPV) established by the Board of Governors of the Federal Reserve, which, along with a loan commitment from the Federal Reserve to the SPV, will enable up to $600 billion in new financing for eligible small and mid-sized businesses.

The Program, as currently revised, is comprised of three separate facilities:

• Main Street New Loan Facility to facilitate new loans to eligible businesses (New Loans);
• Main Street Expanded Loan Facility to facilitate the extension of already existing loans for eligible businesses (Expanded Loans); and
• Main Street Priority Loan Facility, similar to New Loans, but increases the amount eligible lenders will retain of eligible loans to 15% (Priority Loans).

Linked here is an FAQ prepared by Tarter Krinsky & Drogin highlighting key aspects of the Program, as revised.

Attorneys at Tarter Krinsky & Drogin have analyzed the Federal Reserve’s announcement in its entirety and are happy to assist with any inquiries. Please contact your relationship attorney or CV19team@tarterkrinsky.com if you have questions on how this may impact your business