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On June 8, 2020—shortly after announcing the program was set to launch—the Board of Governors of the Federal Reserve (Federal Reserve) announced material changes to some of the key terms for the “Main Street” lending program. As of June 15, 2020, months after it was first announced, the program is finally operational.
As described in our prior alert, the Main Street lending program will provide up to $600 billion in loans to small- and medium-sized businesses in order to ease the economic dislocation caused by the COVID-19 pandemic. Federal Reserve Chair Jerome H. Powell has underscored in several recent remarks that one key goal of the program is to ensure companies can continue to support the country’s workforce.
Since the initial roll out of the program, the Federal Reserve has continued to announce changes, new details, and clarifying FAQs, that provide important guidance to potential participants. These include significant changes made to the program on May 27, 2020, and then again on June 8, 2020, on the eve of the program’s launch. Understanding the changes and clarifications to the program since its launch will be crucial for companies considering submitting an application for funds.
To read the full alert, please click here.