The Fed's Main Street Lending Program is About to Begin; Here's What You Need to Know
The Federal Reserve's unprecedented Main Street Lending Program (MSLP) is set to kick off any day now. The program is designed to provide financial support to companies that have been hurt by the coronavirus pandemic but were too big to qualify for loans in the Paycheck Protection Program (PPP).
Essentially, the Fed is trying to directly reach middle-market companies -- eligible borrowers in the program are businesses that have 15,000 employees or fewer, or that earn annual revenue of $5 billion or less. Eligible borrowers will be able to obtain four-year loans ranging from $500,000 to $200 million -- far larger than PPP loans, which did not exceed $10 million. The program is set to run until Sept. 30 and has the ability to fund up to $600 billion in loans, a little bit smaller than the $660 billion collectively authorized for the PPP to date.
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Source Fool.com
