WASHINGTON, D.C. – The U.S. Chamber of Commerce today applauded the leadership of the Federal Reserve Board and U.S. Treasury Department as they created a much-needed Main Street Lending Facility as well as other important programs to support businesses of all sizes and provide access to the financing they need to maintain operations during the ongoing period of economic certainty amid the COVID-19 pandemic.
“The creation of the Main Street Lending Facility is critical for the economy to weather this storm,” said Neil Bradley, Executive Vice President and Chief Policy Officer, U.S. Chamber of Commerce. “Businesses of all sizes should benefit from policies that are designed to provide liquidity. Mid-sized businesses employ over 60 million Americans, and the Chamber is pleased to see our recommendation for a lending facility will be implemented to tide these businesses over and ensure that they can continue to pay their employees.”
The Federal Reserve Board’s Main Street Lending Program is designed to support businesses that were in good financial standing before the crisis. It offers 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion, and defers principal and interest payments for one year. In a letter to the Administration and Congress on March 16, the Chamber recommended they create a bridge loan for medium and large businesses as it became clear economic disruption was imminent.
The Federal Reserve took additional important actions today, along with the Main Street Lending Program, to support businesses and communities:
- The Paycheck Protection Program Liquidity Facility (PPPLF) will provide liquidity to banks issuing loans through the Small Business Administration’s Paycheck Protection Program.
- The expanded Primary Market Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF) will provide liquidity to businesses by purchasing up to $750 billion in corporate bonds.
- The Municipal Liquidity Facility will permit state and local governments to access up to $500 billion in financing so they can continue to provide essential services.
- The Term Asset-Backed Securities Loan Facility (TALF) will make up to $100 billion of loans available that support the credit needs of consumers and businesses.
These programs, combined with the Main Street Lending Program, will provide much needed additional support to businesses, communities, individuals, and our economy.