The Federal Reserve announced it is striving to assist small- and medium-sized businesses with its latest program: Main Street Lending. This program has been designed to help businesses that were on solid ground before the COVID-19 pandemic get back on their feet.
The Federal Reserve states the Program will operate through three facilities:
- Main Street New Loan Facility (MSNLF)
- Main Street Priority Loan Facility (MSPLF)
- Main Street Expanded Loan Facility (MSELF)
(source: Federal Reserve Board).
Gregg Gallson, Senior Consulting Manager at CTBK, and Dan Miner, a reporter at Buffalo Business First, sat down to discuss the Main Street Lending Program and all that it entails.
The Main Street Lending Program is not the first initiative offered by the U.S. government in an attempt to help businesses struggling due to the pandemic. The Paycheck Protection Program (PPP) is a predecessor program that has undergone multiple updates and alterations since its initial release in early April.
Unlike the PPP, the Main Street Lending Program is found to be more competitive, Gallson said.
“This is good for the liquidity of certain borrowers who can’t get money elsewhere,” he said. “But it’s not a gold rush like the PPP.”
While the program is set to launch, Gallson believes it will be relevant to only a small number of companies throughout the Western New York region.