The Federal Reserve’s $600 billion Main Street lending facility had covered less than $77 million in loans to only eight companies near the end of July, further revealing how little reach the program has had, even as millions of businesses vie for survival, the Washington Post reported. The Fed yesterday released a report breaking down each outstanding loan, including the lending bank, borrower and loan amount as of July 27. Of the eight companies, six are in Florida and received loans issued by the City National Bank of Florida. The largest loan, secured by a Pennsylvania casino operator, was for $50 million, followed by a $12.3 million loan to a dental practice in Wisconsin. Other loans, ranging from $5.5 million to $1.5 million, went to a roofing company, a building company and a real estate broker. The Fed’s latest balance sheet yesterday showed $95 million in outstanding Main Street loans, reflecting a slightly larger cumulative tally since July 27. As part of the Fed’s vast portfolio of emergency tools, the Main Street program is meant to provide low-interest loans to midsize businesses. But the facility has been dogged for months by a slow rollout, a bumpy start and little uptake since it went fully operational last month. Struggling businesses say the terms are too onerous and can’t practically serve as a lifeboat in a time of such economic distress. Thousands of banks are eligible to sign up, but many of the country’s largest firms did not sign on initially. None of the loans included in yesterday’s report were issued by major banks.
