November 6, 2020 – This week the Federal Reserve revised the Main Street Lending Program (MSLP) to increase support for small businesses by reducing the minimum loan size and excluding Paycheck Protection Program loans of up to $2 million from the MSLP maximum loan size determination. Congress did not introduce any significant legislation related to fiscal stimulus this week.
Regulatory Developments Relating to the Pandemic
Main Street Lending Program Revised to Better Support Small Businesses
On October 30, the Federal Reserve Board revised the terms of
the Main Street Lending Program (MSLP) to provide better support to
smaller businesses. First, the minimum loan size for three MSLP
facilities available to for-profit and non-profit borrowers has
been reduced from $250,000 to $100,000 and the fees have been
adjusted to encourage the provision of these smaller loans. Second,
the Federal Reserve Board issued a new frequently asked question
clarifying that Paycheck Protection Program loans of up to $2
million may be excluded for purposes of determining the maximum
allowable loan size under the MSLP, if certain requirements are
met.
- Press release
- FAQ
- Main Street New Loan Facility Term Sheet
- Main Street Priority Loan Facility Term Sheet
- Main Street Expanded Loan Facility Term Sheet
- Nonprofit Organization New Loan Facility Term Sheet
- Nonprofit Organization Expanded Loan Facility Term
Sheet
Originally Published By Hughes Hubbard, November 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.