Federal Reserve Governor Lael Brainard’s Message on the Opening of Registration for the Main Street Lending Program

June 15, 2020

The COVID-19 pandemic has caused tremendous heartache and hardship. This emergency is unprecedented in modern times, and the Federal Reserve has been asked to respond boldly and creatively. With financing authorized by Congress and backing from the Treasury Department, the Federal Reserve established the Main Street Lending Program to support lending to the small- and medium-sized businesses that employ tens of millions of people around the country. The Main Street program can help provide a bridge, so these important employers can survive the crisis and provide the vital goods and services that will strengthen the recovery.

In designing this program to reach as many borrowers as possible, we benefited from listening to you and other stakeholders. We appreciate your input, and trust you will find your suggestions reflected in key program features.

To learn more about the Main Street Lending Program and how it may be helpful to you, your customers, and your community, we have attached a list of resources, a link to frequently asked questions and answers, and other helpful materials. I encourage you to take a fresh look at the Main Street program, assess which borrowers might be good candidates, and begin to fund the loans that qualify.

The resilience of the American economy is rooted in the small- and medium-sized businesses and their millions of employees, who develop creative solutions to delivering valued goods and services to their customers and communities. I hope you will join us in this important effort to support jobs and economic recovery in your community and across the country.

Sincerely,

Lael Brainard

Member of the Board, Board of Governors of the Federal Reserve System

Main Street Lending Program

Understanding the importance of meeting the needs of households and businesses during the COVID-19 crisis, the Federal Reserve, with financing authorized by Congress and backing from the Treasury Department, created the Main Street Lending Program to support lending to small- and medium-sized businesses. Small- and medium-sized businesses are a vital part of the economy and employ tens of millions of people around the country. The Program can provide a bridge to help these important businesses through the current crisis so that they can reopen and contribute to an economic recovery.

We encourage you to begin making Main Street loans. The Program intends to purchase 95% of each eligible loan that is submitted to the Main Street SPV, provided that the required documentation is complete and the transactions are consistent with the relevant Main Street facility’s requirements.

Resources and Key Documents

Need to learn more about how to register? See Information for Lenders (Off-site) and download these instructions (Off-site).

Find the registration and loan participation documents you need here (Off-site).

Review key loan terms (Off-site) and compare the different types of Main Street loans (Off-site).

Get answers. Extensive FAQs can be found here (Off-site, PDF).

Further Questions? Contact the Federal Reserve by emailing mslp@bos.frb.org.

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