Minimum loan size reduced for certain Main Street program options

The Federal Reserve Board today reduced the minimum loan size for three Main Street Lending Program facilities from $250,000 to $100,000 and adjusted associated fees to support smaller organizations facing continued revenue shortfalls due to the pandemic.

The board and Treasury Department also clarified that certain lenders and borrowers may exclude Paycheck Protection Program loans totaling under $2 million when determining the maximum loan size under the Main Street program.

The Main Street program supports loans with deferred principal and interest for qualified businesses and nonprofit organizations with up to 15,000 employees and $5 billion in revenue in 2019. The program expects to make loan documents reflecting the new terms available to registered lenders in the coming week.