Federal Lending Program Begins for <br />Small and Medium-Sized Businesses The Federal Reserve's <br />Main Street Lending Program, <br />which was announced at the <br />beginning of April, is finally underway. The program encourages banks to lend to <br />small and medium-sized businesses that have <br />been hit hard by the COVID-19 pandemic, but only businesses that were <br />in "sound financial condition" <br />before the pandemic are eligible. Businesses have to apply <br />for the loans with their banks, <br />which have to register as <br />main street lenders. Five-year loans ranging between $250,000 to $300 million <br />will be offered with no principal due for two years <br />and no interest due for one year. Businesses with up to <br />15,000 employees or up to $5 billion <br />in annual revenue are eligible. The central bank will purchase 95% of each loan, <br />assuming the majority of the risk and allowing <br />banks to make more loans.
