Fed expands access to Main Street Lending Program

May 01, 2020

The Federal Reserve Board said it is expanding the scope and eligibility of its Main Street Lending Program, reflecting some of ICBA’s recommendations for the program.

The Fed said it is lowering the minimum loan size for certain loans to $500,000, creating a third loan option with increased risk sharing by lenders for borrowers with greater leverage, expanding the pool of businesses eligible to borrow, and using LIBOR instead of SOFR to benchmark the loan interest rate.

In a letter to the Fed earlier this month, ICBA said the program is too complicated, excludes small businesses because it has a minimum loan amount of $1 million, and should have a minimum loan size no higher than $100,000.