The Federal Reserve Board amended the terms of its Main Street Lending Program (MSLP) to allow more businesses to participate. A launch date has not been announced though the FRB states it expects the MSLP to be “open for lender registration soon and to be actively buying loans shortly afterwards.” The FRB adds that the MSLP “will also accept loans that were originated under the previously announced terms, if funded before June 10, 2020.”
New term sheets are available for each of the MSLP facilities:
- Main Street New Loan Facility (MSNLF)
- Main Street Priority Loan Facility (MSPLF)
- Main Street Expanded Loan Facility (MSELF)
Key changes include:
- Lowering the minimum loan size for loans under the MSNLF and MSPLF to $250,000, from $500,000
- Increasing the maximum loan size for all facilities
- Increasing the term to five years from four years for each loan option across all facilities
- Extending the repayment period for all loans by delaying principal payments for two years, rather than one
- Raising the Reserve Bank's participation to 95 percent for all loans (i.e., reducing the risk retention percentage under the MSPLF).
The Federal Reserve Bank of Boston, which will administer the MSLP, released updated FAQs.
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