Federal Reserve Establishes Main Street Business Lending Program
On April 9, 2020, the Federal Reserve announced seven new or expanded programs providing up to $2.3 trillion in loans to support the economy, including through increased credit flows to small- and medium-sized businesses. A significant portion of the $2.3 trillion is allocated towards the establishment of the Main Street Business Lending Program, which will make up to $600 billion in new financing in the form of four-year term loans available to businesses with up to (i) 10,000 employees or (ii) $2.5 billion in 2019 annual revenues that were in good financial standing before the crisis. The Treasury, using funds appropriated to the Exchange Stabilization Fund, will make a $75 billion equity investment to backstop the Main Street Program.