Fed Extends Main Street Lending ProgramOctober 30, 2020
The National Small Business Association (NSBA) is commending the Federal Reserve for their actions earlier today to expand its emergency small-business lending program by lowering the minimum loan amount under its Main Street program to $100,000 from $250,000, and allowing Paycheck Protection Program (PPP) funds to be excluded from the required debt calculations under the Fed’s program.
Below is a statement from NSBA President and CEO Todd McCracken.
“As COVID-19 cases are increasing significantly, whatever tenuous economic recovery we experienced late-summer is slowing, and as is always the case, small business will be the first to feel that financial pain. I applaud the Fed for stepping up and doing what they can to provide additional lending to America’s hardest-hit businesses.
“This move is particularly important given Congress’ inability to pass a more sweeping stimulus bill or even a targeted bill to reopen the Paycheck Protection Program. And while the Main Street Lending program hasn’t been overwhelmingly utilized by banks or small-business borrowers to this point, this program expansion could change that.
“These common-sense changes can provide small businesses with the flexibility they need to weather this ongoing storm. It is not just the survival of the business that is impacted but the livelihoods of their employees, their families and the communities they serve.
“Now it is time for Congress to follow suit. They must recognize the need for additional small-business support and—above all—act on it.”