The Main Street Lending Program was set up to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic, but which are now under extreme stress due to stay-at-home and business closure orders from governments. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).
Structure. To implement the Program, the Federal Reserve Bank of Boston has set up a special purpose vehicle (SPV) to purchase participations in loans originated by eligible lenders.
Lenders will retain a percentage of the loans. As detailed further in the term sheets, U.S. businesses may be eligible for loans if they meet either of the following conditions:
(1) the business has 15,000 employees or fewer; or
(2) the business had 2019 revenues of $5 billion or less.
Loans issued under the Program would have a four-year maturity, and principal and interest payments on the Loans will be deferred for one year.
Eligible lenders may originate new loans (under MSNLF and MSPLF) or increase the size of (or “upsize”) existing loans (under MSELF) made to eligible businesses." - Federal Reserve