U.S. Rep. Frank Lucas (R-OK) commended July 6 action by the Federal Reserve Bank of Boston to make the Main Street Lending Program (MSLP) fully operational and the announcement that they’re ready to purchase eligible loans that are submitted to the program by registered lenders, thereby providing liquidity to the lenders.
“I thank the Federal Reserve for their willingness to expand the program, furthering Congress’ intent to provide stability for a broad-based economic recovery,” Rep. Lucas said on July 8.
The MSLP offers five-year loans to help credit flow to small- and medium-sized businesses that were in sound financial condition prior to the COVID-19 pandemic, according to the Boston Fed.
“Businesses and families across the country are continuing to weather the economic disruptions of the coronavirus, and the Main Street Lending Program’s support through financial lending to small and mid-sized businesses is critical to the health of our local economies,” said Rep. Lucas.
MSLP loans will provide stopgap support to keep U.S. businesses operational and enable consumers to remain active in the nation’s economy as communities across the country work to reopen, according to information provided by Rep. Lucas’ office.
“While the duration of the pandemic remains uncertain, and as our health care leaders work strenuously towards a vaccine, I hope businesses and banks alike continue to work together to ensure a strong economic recovery for Main Street and our local economies,” Rep. Lucas said.
An eligible borrower is a business with up to 15,000 employees or up to $5 billion in 2019 annual revenues that was created or organized in the United States and has significant operations in and a majority of its employees based in the U.S.
A borrower must commit to commercially reasonable efforts to maintain payroll and retain workers and must comply with the Coronavirus Aid, Relief, and Economic Security (CARES) Act requirements on executive compensation, stock buybacks, dividends, and capital distributions, according to Rep. Lucas’ office.