What is the 'Main Street Lending Program'?

The Main Street Lending Program is an initiative by the Fed to keep credit flowing to small and mid-sized businesses during the coronavirus crisis. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Main Street Lending Program The Main Street Lending Program is a program announced April 9, 2020, in which the Federal Reserve will purchase loans that banks give to small and mid-sized businesses. The Fed will purchase 95% of each loan, so that the bank must keep 5% of the loan on its books to discourage irresponsible lending. The program is designed to keep credit flowing to small and mid-sized businesses that were in "good financial standing" before the onset of the COVID-19 coronavirus crisis, but which are now under extreme stress due to stay-at-home and business closure orders from state and local governments. To be eligible, a company must employ less than 10,000 people or have annual revenue of less than $2.5 billion. Under the program, the Federal Reserve will purchase up to $600 billion of loans to qualifying businesses. Read More » Related to "Main Street Lending Program" The Paycheck Protection Program and Health Care Enhancement Act The newest COVID-19 legislation—giving relief to small businesses, hospitals, and healthcare workers—has been signed. What it covers. Read More » How to Navigate the New Small Business Relief Plan and Get a PPP Loan New funding has been appropriated for the PPP loan program. Here's what you need to know to get your foot in the door and come away with funding this time around. Read More » SPONSORED BY DIREXION How Long Will Bears Stay in Charge? While the current market may be a factor in the small- and mid-cap bear market, it's far from the only one. Direxion's experts explain why it's happening and what lies ahead. Learn More » Coronavirus Aid, Relief, and Economic Security (CARES) Act The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion package of measures introduced in March 2020 in response to the COVID-19 pandemic. Read More » Related Definitions Exchange Stabilization Fund The Exchange Stabilization Fund (ESF) is an emergency reserve account that can be used by the U.S. Treasury to mitigate financial market instability. Read More » Share Repurchase A share repurchase is a transaction whereby a company buys back its own shares from the marketplace, reducing the number of outstanding shares and increasing the demand for the shares. Read More » Special Purpose Vehicle A special purpose vehicle, also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate its financial risks. Read More » Unsecured Loan An unsecured loan is a loan that is issued and supported only by the borrower's creditworthiness, rather than by some type of collateral, such as property or other assets. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy