April 20, 2020
Recently, the Federal Reserve and the U.S. Treasury have announced their intent to implement the Main Street Lending Program which will provide liquidity to lenders to support mid-sized businesses with 500-10,000 employees. Congress stated their intent for the program in the CARES ACT. While many program details are yet to be announced, Congress indicated their intent to have lenders who provide loans under this program to cap interest on those loans at an annualized interest rate at 2% per annum and include a period of at least 6 months in which no principal or interest shall be due.
Borrowers will not be required to apply through the Small Business Administration (SBA), and lenders are not required to be SBA certified.
Similar to other economic relief programs provided by the CARES ACT, it is expected to take several weeks before lending begins, and additional details of the program become available. However, in the meantime, if you are interested in a loan you should reach out to your lender to discuss options.