On Monday, July 6, the Federal Reserve Bank of Boston announced that the Main Street Lending Program (MSLP) is now fully operational. The program, established by the Federal Reserve to ease economic stress placed on businesses by the COVID-19 pandemic, allows the Federal Reserve Bank of Boston to purchase participation in eligible loans from registered lenders. The Federal Reserve Bank of Boston is now encouraging lenders to submit qualifying loans.
The MSLP is aimed toward providing temporary relief to small and medium-sized businesses who may not be eligible for loans under the Paycheck Protection Program. Potential borrowers may apply directly to local lenders who must approve the loan before it is purchased by the Federal Reserve Bank of Boston. Principal payments on the five year loans are deferred for two years, and interest payments are deferred for one year. Potential loans range from $250,000 to $300 Million.
The Federal Reserve Bank of Boston intends to release a state-by-state list of approved lenders in the coming days.
A printable version of this information can be found by clicking HERE.
Mark L. Brasee
Neil P. Hassler
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.