Fed Expands Main Street Lending Program

The Federal Reserve made several changes to the Main Street Lending Program on Monday that should result in more businesses being able to participate; it lowered the minimum loan from $500,000 to $250,000, extended the loan term from four years to five years and increased the amount of time principal payments can be deferred from one year to two years; it also made changes to appeal to lending banks increasing the amount the Fed will purchase of each loan from 85% to 95%; the program is set to begin very soon. Banking Dive