WASHINGTON – U.S. Treasury Secretary Steven T. Mnuchin issued the following statement on the expansion of the Main Street Lending Program announced by the Federal Reserve Board:
“The expansions announced yesterday to the Main Street Lending Program are the result of an extensive comment period, and are designed to better meet the needs of small and medium-sized businesses. This should help support a broad-based economic recovery as the country reopens. Many great American companies that were in sound financial condition have been adversely impacted by the pandemic. The Main Street Lending Program was established to help ensure that these businesses have access to the liquidity they need to maintain, restart, and rehire as the economy safely reopens. The Federal Reserve Board lowered the minimum, increased the maximum loan size thresholds, and extended the repayment period by delaying principal payments for two years. They also extended the term to five years in order to provide greater flexibility for borrowers. Other changes include lowering the portion of the loans retained by the originating bank to five percent for all eligible loans submitted to the program.”
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