This Client Alert discusses the creation of the Main Street Business Lending Program (“Main Street Program”) by the Federal Reserve, which allows the Federal Reserve to use funds made available under Title IV of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) to purchase eligible loans given to eligible businesses.
Updated May 1, 2020. The Federal Reserve announced modifications to its Main Street Lending Program on April 30, 2020 in response to comments it had received in early April. We have updated our Client Alert accordingly. In modifying the Main Street Lending Program, the Federal Reserve, among other things, created an additional facility, expanded the eligibility criteria, and changed the cutoff date for determining which of the three lending facilities applies to a particular loan.