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  3. Main Street Lending Program

Main Street Lending Program

Designed to help small and medium-sized businesses that were in good financial standing before the COVID-19 crisis maintain their operations and payroll until conditions normalize. These are the three Main Street loan programs established by the Federal Reserve to mitigate the adverse economic effects of the COVID-19 pandemic.

  1. New Loan
  2. Priority Loan
  3. Expanded Loan
  4. Comparison
  5. Federal Reserve resources

Main Street New Loan Facility (New Loan Facility)

    • Purpose: Facilitate lending to small and medium-sized US businesses to mitigate the adverse economic effects of the COVID-19 pandemic. The New Loan Facility is intended to help companies that were financially sound before the pandemic maintain their operations and payroll until conditions normalize.
    • Minimum Loan: $250,000.
    • Maximum Loan: Lesser of:
      • $35 million; or
      • An amount that, when added to the borrower's outstanding and unused available debt, does not exceed 4x the borrower's adjusted 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA).
    • Debt Forgiveness: None.
    • Interest rate: LIBOR (1- or 3-month) plus 3%
    • Term of Loan: Five years.
    • Repayment Schedule:
      • Year 1: Principal and interest payments deferred.
      • Year 2: Principal payments deferred.
      • Years 3-4: 15% each year.
      • Year 5: 70%.
    • Prepayment: Permitted without penalty.
    • Program Period: April 25, 2020 through December 31, 2020.

  • US businesses:

    • With up to 15,000 employees or annual revenues in 2019 of up to $5 billion;
    • With significant operations and a majority of employees based in the US; and
    • That were established before March 13, 2020.

    Businesses must be for-profit entities organized in the US as a partnership, limited liability company, corporation, association, trust, cooperative, joint venture with no more than 49% participation by foreign business entities, or tribal business concern.

    • May not also participate in the Main Street Priority Loan Facility, Main Street Expanded Loan Facility, or the Primary Market Corporate Credit Facility, Nonprofit Organization New Loan Facility, or Nonprofit Organization Expanded Loan Facility.
    • Must not have received specific support under the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the CARES Act) (that is, air travel, air cargo carriers, and businesses critical to national security).
    • Cannot use funds to pay off other loans.
    • Businesses that have taken advantage of the Small Business Administration’s Paycheck Protection Program may also take out loans under the New Loan Facility.
    • Business must apply for a loan through an eligible lender.
    • Lender will evaluate the borrower's financial health prior to approving the loan and will ensure that the loan complies with the New Loan Facility's requirements.
    • Lender sells a 95% participation in the loan to a special purpose vehicle established by the Federal Reserve under the Main Street Lending program and retains a 5% interest in the loan on its own books.

Main Street Priority Loan Facility (Priority Loan Facility)

    • Purpose: Facilitate lending to small and medium-sized US businesses to mitigate the adverse economic effects of the COVID-19 pandemic. The Priority Loan Facility is intended to help companies that were financially sound before the pandemic maintain their operations and payroll until conditions normalize.
    • Minimum Loan: $250,000.
    • Maximum Loan: Lesser of:
      • $50 million; or
      • An amount that, when added to the borrower's outstanding and unused available debt, does not exceed 6x the borrower's adjusted 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA).
    • Debt Forgiveness: None.
    • Interest rate: LIBOR (1- or 3-month) plus 3%
    • Term of Loan: Five years.
    • Repayment Schedule:
      • Year 1: Principal and interest payments deferred.
      • Year 2: Principal payments deferred.
      • Years 3-4: 15% each year.
      • Year 5: 70%.
    • Prepayment: Permitted without penalty.
    • Program Period: April 25, 2020 through December 31, 2020.

  • US businesses:

    • With up to 15,000 employees or annual revenues in 2019 of up to $5 billion;
    • With significant operations and a majority of employees based in the US; and
    • That were established before March 13, 2020.

    Businesses must be for-profit entities organized in the US as a partnership, limited liability company, corporation, association, trust, cooperative, joint venture with no more than 49% participation by foreign business entities, or tribal business concern.

    • May not also participate in the Main Street New Loan Facility, Main Street Expanded Loan Facility, or the Primary Market Corporate Credit Facility, Nonprofit Organization New Loan Facility, or Nonprofit Organization Expanded Loan Facility.
    • Must not have received specific support under the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the CARES Act) (that is, air travel, air cargo carriers, and businesses critical to national security).
    • Cannot use funds to pay off other loans.
    • Businesses that have taken advantage of the Small Business Administration’s Paycheck Protection Program may also take out loans under the New Loan Facility.
    • Business must apply for a loan through an eligible lender.
    • Lender will evaluate the borrower's financial health prior to approving the loan and will ensure that the loan complies with the Priority Loan Facility's requirements.
    • Lender sells an 95% participation in the loan to a special purpose vehicle established by the Federal Reserve under the Main Street Lending program and retains a 5% interest in the loan on its own books.

Main Street Expanded Loan Facility (Expanded Loan Facility)

    • Purpose: Facilitate lending to small and medium-sized US businesses to mitigate the adverse economic effects of the COVID-19 pandemic. The Expanded Loan Facility is intended to help companies that were financially sound before the pandemic maintain their operations and payroll until conditions normalize.
    • Upsizing of an Eligible Loan: Eligible borrower can apply to increase the size of (upsize) an existing loan or line of credit that was originated on or before April 24, 2020, and has a remaining maturity of at least 18 months.
    • Minimum Loan: $10 million.
    • Maximum Loan: Lesser of:
      • $300 million; or
      • An amount that, when added to the borrower's outstanding and unused available debt, does not exceed 6x the borrower's adjusted 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA).
    • Debt Forgiveness: None.
    • Interest rate: LIBOR (1- or 3-month) plus 3%
    • Term of Loan: Five years.
    • Repayment Schedule:
      • Year 1: Principal and interest payments deferred.
      • Year 2: Principal payments deferred.
      • Years 3-4: 15% each year.
      • Year 5: 70%.
    • Prepayment: Permitted without penalty.
    • Program Period: April 25, 2020 through December 31, 2020.

  • US businesses:

    • With up to 15,000 employees or annual revenues in 2019 of up to $5 billion;
    • With significant operations and a majority of employees based in the US; and
    • That were established before March 13, 2020.

    Businesses must be for-profit entities organized in the US as a partnership, limited liability company, corporation, association, trust, cooperative, joint venture with no more than 49% participation by foreign business entities, or tribal business concern.

    • May not also participate in the Main Street New Loan Facility, Main Street Priority Loan Facility, or the Primary Market Corporate Credit Facility, Nonprofit Organization New Loan Facility, or Nonprofit Organization Expanded Loan Facility.
    • Must not have received specific support under the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the CARES Act) (that is, air travel, air cargo carriers, and businesses critical to national security).
    • Cannot use funds to pay off other loans.
    • Businesses that have taken advantage of the Small Business Administration’s Paycheck Protection Program may also take out loans under the New Loan Facility.
    • Business must apply for a loan through an eligible lender.
    • Lender will evaluate the borrower's financial health prior to approving the loan and will ensure that the loan complies with the New Loan Facility's requirements.
    • Lender sells a 95% participation in the upsized portion of the loan to a special purpose vehicle established by the Federal Reserve under the Main Street Lending program and retains a 5% interest in the upsized portion of the loan on its own books.

Main Street Lending Program: Comparison of Loan Facilities

Loan type
 New Loan Facility
 Priority Loan Facility
 Expanded Loan Facility
Minimum loan $250,000
 $250,000
 $10 million
Maximum loan
 Lesser of:
a) $35 million; or
b) an amount that, when added to outstanding and unused available debt, does not exceed 4x adjusted 2019 EBITDA		 Lesser of:
a) $35 million; or
b) an amount that, when added to outstanding and unused available debt, does not exceed 6x adjusted 2019 EBITDA		 Least of:
a) $300 million;
b) 35% of existing outstanding and unused available debt; or
c) an amount that, when added to outstanding and unused available debt, does not exceed 6x adjusted 2019 EBITDA
Debt forgiveness None None None
Interest rate
 LIBOR + 3%
 LIBOR + 3%
 LIBOR + 3%
Term 5 years 5 years
 5 years
Repayment Year 1: Principal and interest deferred
Year 2: Principal deferred
Years 3-4: 15% each year
Year 5: 70%		 Year 1: Principal and interest deferred
Year 2: Principal deferred
Years 3-4: 15% each year
Year 5: 70%		 Year 1: Principal and interest deferred
Year 2: Principal deferred
Years 3-4: 15% each year
Year 5: 70%
Prepayment Permitted without penalty Permitted without penalty Permitted without penalty

Federal Reserve resources

Last Updated: 7/30/2020

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