On April 30, 2020, the Board of Governors of the Federal Reserve System (“FRB”) announced an expansion of the Main Street Lending Program (“MSLP”) and clarified certain aspects of the program through publication of a list of FAQs. In general, the changes expand the number of businesses eligible to borrow, reduce the minimum loan size for eligibility, and establish a third facility under the program, the Main Street Priority Loan Facility (“MSPLF”), expanding the loan types eligible for financing. In addition, certain U.S. operations of foreign banking organizations (“FBOs”) are now permitted to participate as lenders in the program. This client alert provides an overview of the MSLP facilities and summarizes the key changes to the MSLP, as announced on April 30, 2020.
Read our client alert.