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Federal Reserve’s Main Street Lending Program

The Federal Reserve’s Main Street Lending Program Can
Help Eligible Businesses through the COVID-19 Pandemic


Dear Boards of Directors and Chief Executive Officers:

The Federal Reserve System’s Main Street Lending Program is designed to help credit flow to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic.

The Federal Reserve Bank of Boston administers the Main Street Lending Program. The Bank uses a special purpose vehicle to purchase loan participations from eligible lenders across the U.S.

The NCUA encourages credit unions to participate in this program, if appropriate.

Loans originated under the program have several features that will help businesses facing challenges. The program offers 5-year loans, with floating rates, and principal and interest payments deferred to assist businesses facing temporary cash flow interruptions. The loans range in size from $250,000 to $300 million — a wide range that may support a broad set of employers.

Credit unions will be able to assist their members during this difficult period with minimal risk exposure, as the loans will be offered as a participation with the Federal Reserve providing 95 percent of the loan and the credit union providing 5 percent. The credit union will service the loan.

For more information on this lending program, please visit the program’s webpage.

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