FRB Releases Updated FAQ Regarding The “Main Street Lending Program”

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.

With respect to the Program, the FRB has released a detailed, 63 page, set of “Frequently Asked Questions” (as most recently released on June 8, 2020; the “FAQ”). While inevitably the FAQ does not answer all questions which might arise in connection with the Program, it is well organized, provides breakdowns of questions with respect to each facility, and is relatively easy to follow. Below are summaries of the questions/answers provided in the FAQ with respect to some of the more commonly asked questions concerning borrowers. 

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