The Main Street Lending Program is a program designed to provide access to credit for small to medium-size businesses that need the financing due to the COVID-19 pandemic. The program is administered by the Federal Reserve, which is authorized to purchase up to $600 billion in loans made from eligible lenders to eligible borrowers.
To implement the program the Federal Reserve of Boston established a Special Purpose Vehicle. That SPV contains three separate loan facilities – the Main Street New Loan Facility, the Main Street Priority Loan Facility, and the Main Street Expanded Loan Facility. An eligible business can borrow money from only one of the facilities. The chart below highlights some of the key features of each kind of loan. The information is based on the most recent term sheets provided by the Federal Reserve, which were released on June 8. For more details see the term sheets, which can be accessed from the Federal Reserve’s website here: https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm