Main Street Begins Loan Purchases; Lender List to Come
On July 6, the Federal Reserve Bank of Boston (“FRBB”) announced that the Main Street Lending Program will now begin purchases of 95% participation stakes in eligible loans, completing the roll-out of the program that represents Treasury and the Federal Reserve’s joint effort to ensure small- and mid-sized businesses have access to credit on equitable terms in the face of the pandemic.
The FRBB also announced that shortly it will publish a list of participating lenders by state for easy reference by interested borrowers. BDO will publish another alert when this list becomes available.
How to Apply for a Main Street Loan
An MSLP loan application may be submitted to a federally insured lending institution, which will apply its own underwriting criteria. In addition, the Federal Reserve also released application forms and agreements that must be completed in conjunction with the primary loan application. The documents include borrower certifications and covenants.
The Federal Reserve cautions that “eligible borrowers should contact an eligible lender for more information on whether the eligible lender plans to participate in the program and to request more information on the application process.”
Please refer to the Federal Reserve’s Main Street website for the latest program information.
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