Federal Reserve launches long-awaited Main Street lending program

The Federal Reserve said on Monday it had opened registration for lenders interested in participating in its Main Street Lending Program, launching arguably the most complex program undertaken yet by the U.S. central bank to help keep the backbone of the economy from buckling under the strains of the coronavirus pandemic.

The program, targeted at companies that were in good shape before the pandemic but may now need financing to retain workers and fund operations, will offer up to $600 billion in loans through participating financial institutions to U.S. businesses with up to 15,000 employees or with revenues up to $5 billion.

Lenders must register using the lender portal and are encouraged by the Fed to begin making program loans "immediately."

Administered by the Boston Fed, the program aims to offer credit to companies that may be too large to qualify for help from the Paycheck Protection Program, which targets businesses with fewer than 500 employees. Unlike the PPP, which was established by Congress in late March and offers loans that can be converted to grants if businesses meet certain requirements, the loans offered by the Main Street program must be repaid.