Treasury and Federal Reserve Announce Lending Program for Midsize Businesses
Updated: June 4, 2020
The US Department of the Treasury (Treasury) and the Federal Reserve Board (Federal Reserve) recently announced the Main Street Lending Program to provide additional support to mid-size businesses. This lending program, authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is for companies employing up to 15,000 workers or with revenues less than $5 billion. Principal and interest payments on these four-year loans will be deferred for one year. Companies seeking Main Street loans must commit to making reasonable efforts to maintain payroll and retain workers and must also follow compensation, stock repurchase and dividend restrictions that apply to direct loan programs under the CARES Act. Companies that have taken advantage of the Paycheck Protection Program loans may also take out Main Street loans.
ASCA recommends that your center consult with your legal and lending partners about this lending program. Additional information is available on the Federal Reserve website.