In an effort to provide more support for small and medium-sized businesses, on June 8, 2020, the Federal Reserve Board (Board) revised the terms of its “Main Street Lending Program” (Program). The significant changes include:

• Lowering the minimum loan size for “new” and “priority” loans to $250,000 from $500,000;
• Increasing the maximum loan size for all facilities;
• Increasing the term of each loan option to five years, from four years;
• Extending the repayment period for all loans by delaying principal payments for two years, rather than one; and
• Raising the Reserve Bank’s participation to 95% for all loans.

The following chart provides additional detail on the above changes:

Although the Board has yet to open the Program for lender registration, it expects to do so soon. Moreover, the Board announced that it is working on establishing a lending program for nonprofit organizations (which are ineligible under the Program). In the meantime, borrowers should reach out to their existing lenders and discuss whether they intend to participate in the Program and how they can best be positioned to access those loans once the Program officially launches.