Fed Updates on Main Street Lending Program and PMCCF
Tue July 7, 2020
The Federal Reserve Bank of Boston has announced that the Main Street Lending Program is now ready to purchase participations in loans that lenders submit to the program. Banks will make a lending decision based on the program’s terms and their own underwriting standards; after a loan is approved, the Fed will purchase a 95% participation from the lender. The Fed will soon publish a state-by-state listing of lenders accepting new business customers under the Main Street program.
Another Fed program, the Primary Market Corporate Credit Facility, is also now operational. The PMCCF will provide larger corporations with access to credit by purchasing corporate bonds. Your business could be eligible if you have an investment-grade credit rating and did not receive specific support via the CARES Act’s financing provisions for air carriers and national security businesses. You can learn more about the PMCCF here. The program’s term sheet is available here.