Client Alert: The “Main Street Lending Program”: What It Is and How It Works

The “Main Street Lending Program” (the “Program”) was established by the Federal Reserve Board (the “FRB”) to support lending to small and medium-sized businesses that were in sound financial condition prior to the onset of the COVID-19 pandemic. Under the Program, which was authorized under Title IV the “Coronavirus Aid, Relief, and Economic Security Act” (the “CARES Act”) and previously announced on April 9, 2020, the FRB has currently allocated $600 billion in funds to indirectly facilitate loans to eligible borrowers. While the FRB has not yet announced an actual start date for the Program, they have released a significant amount of guidance regarding the Program. This Client Alert, written by Partners Anthony Zeoli and Kenneth Crane, highlights what we know so far about the Program, including a comparison of the available types of loans under the Program and the respective eligibility requirements of each.