Main Street Lending Program
The Federal Reserve is establishing a Main Street Lending Program to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. This Main Street Lending Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF) and the Main Street Expanded Loan Facility (MSELF). These facilities will be set up as special purpose vehicles to purchase participations in loans originated by credit unions. There are certain conditions for eligible borrowers, but generally they must be a U.S. business with at least 15,000 employees or less OR had 2019 revenues of $5 billion or less. Loans will have a four year maturity, and principal and interest payments on the loans will be deferred for a year.
Main Street Lending Program: FAQs
Main Street Lending Program: Additional Resources
Main Street Lending Program: Model Policies
The following policy from CU PolicyPro can be used to help you craft your own policy on this topic:
We recommend reviewing your own policies to see if this policy or similar policies have already been customized and are in use by your credit union. If you're not sure if your credit union subscribes to CU PolicyPro, contact firstname.lastname@example.org for assistance.