As the Federal Reserve prepares to start up its Main Street lending program, it has changed the terms to allow for greater participation, CNBC.com reported yesterday. The central bank said yesterday that it is lowering the initially stated minimum loan and raising the maximum that can be borrowed, plus is expanding the loan terms to five years. The program is part of the Fed’s efforts to get money to small- and medium-sized businesses hurt during the coronavirus-induced recession. Under the new guidelines, the minimum loan now will be $250,000, half the amount under previous versions of the plan. The maximum will now vary by facility but could be up to $300 million from the previous $200 million. Fed Chairman Jerome Powell recently said the program was “days away” from making its first loan and said the central bank was revamping provisions based on feedback received from thousands of sources.
