On Friday, March 20, 2020, we released a Legal Update addressing the Small Business Administration (SBA)’s response to COVID-19, which is intended to provide sweeping loan assistance to qualified small businesses across the country, but will not provide relief to large businesses and certain small business that do not meet eligibility thresholds. This was the first of several stimulus measures directed by the federal government and the President.

Today, the Federal Reserve announced that it would take major action to implement business stimulus measures, including provision for a business lending program to provide ample availability to large businesses, as well as small business enterprises. These moves will be implemented separate and apart from any actions taken by Congress to provide relief to the business community in the form of an economic stimulus package.

We view this move as a critical step for larger businesses that do not qualify for SBA loans, as well as for smaller-scale business that would otherwise have no relief.

We are closely monitoring the developments from the Federal Reserve on this stimulus measure and will report on the eligibility criteria and access procedures to this business lending program as the details become available.