• Pat McGibbon

Cheap Loans for Businesses with Fewer than 10k Employees and Less than $2.5 Billion in 2019 Revenue

Updated: Apr 10, 2020

The CARES Act legislation that created the Paycheck Protection Program managed by the Small Business Administration also provided funds to the Federal Reserve Board to underwrite a series of programs supported by the Federal Reserve system. The investment will generate multiples of the investment into the program and yield $600 billion in loans. The Fed announced today that it will utilize funds provided through the CARES Act to create a handful of programs that will increase credit and loan availability to municipalities, corporations, and banks. 

The most applicable Fed program to AMT members will be its Main Street Lending Program. The loan minimum under this program is $1 million for a 4-year term at an interest rate of 250-400 basis points plus the Fed’s open window rate. That current rate is effectively zero, so interest rates for loans today would be between 2.5% and 4% per year. Eligible lenders are U.S.-insured depository institutions, U.S. bank holding companies, and U.S. savings and loan holding companies. The application process mirrors your lender’s application process.

The entire Fed package of initiatives should generate $2.3 trillion in loans to support the economy. The Main Street Lending Program’s funding level will generate more than $600 billion in loans.


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