Main Street Lending Program

Originally published on May 4, 2020. Last updated as of September 23, 2020. The Federal Reserve Bank of Boston recently published updated Frequently Asked Questions and related documentation for the Main Street Lending Program’s Business and Nonprofit Facilities, to reflect that the Nonprofit Facilities are operational and to include multi-borrower loans. This client alert describes the main terms, issues and open questions for each of the five separate loan facilities available to eligible businesses and nonprofits under the Fed’s Main Street Lending Program.
On April 9, 2020, the Federal Reserve announced additional programs under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide up to $2.3 trillion in loans and other investments to support the U.S. economy. These actions include: Supplying liquidity to financial institutions participating in the Small Business Administration’s Paycheck Protection Program (the “PPP”) (for more information on the PPP, see here); Expanding the size and scope of the Primary Market Corporate Credit Facility (the “PMCCF”), the Secondary Market Corporate Credit Facility, and Term Asset-Backed Securities Loan Facility, which will support up to $850 billion in…