The Federal Reserve Bank of Boston issued a state-by-state listing of lenders accepting applications from new business customers for the Main Street Lending Program on Wednesday (July 8).
Launched in April, the Fed initiative pledged to purchase 95 percent of each loan banks provide to small and medium-sized businesses (SMBs). It is designed to help credit flow SMBs that were in sound financial condition prior to the COVID-19 pandemic.
The program offers five-year term loans, with principal payments deferred until year three, and interest payments deferred until year two. To support a wide variety of businesses, the loans range in size from $250,000 to $300 million. Business borrowers must apply for program loans through a participating lender.
“We have seen thousands of businesses express interest in this program,” said Eric Rosengren, president of the Boston Federal Reserve Bank, which is administering the program for the Federal Reserve System. “Today, with lenders registered across the country, we can share an initial list of lenders accepting applications from new business customers under the program.”
The program is in full swing and ready to purchase loans and Rosengren encourages more lenders to join the list of financial institutions participating.
The Fed said the list will be updated regularly as more lenders who are accepting applications from new business customers complete the program’s registration process.
Borrowers are encouraged to ask their bank about Main Street loans in addition to those on the list.
To participate in the program, lenders must register using the program’s lender portal, which provides secure access and verification.
Last month, the Federal Reserve announced it would launch the program with loans from $500,000 and $25 million, and companies with up to 15,000 staffers can apply.
While Congress dedicated nearly $700 billion for the Small Business Administration's Paycheck Protection Program, the Fed would not cap the program and increase the amount of resources available.
Also in June, Rosengren said the news of more people going back to work is only positive if it can be done safely and for a sustained time.
“If workplaces reopen without the necessary health precautions, the recent increases in payroll employment could be offset by possible business closures and serious health outcomes later,” Rosengren said in a June 19 speech to the Greater Providence Chamber of Commerce. “If reopening can be done in ways that protect public health, then better outcomes now will also translate to better outcomes in the future.”