Overview of the Main Street Lending Program
As part of its response to the global coronavirus pandemic, the Federal Reserve is launching a “Main Street Lending Program” to deliver up to $600 billion in credit to small and midsize firms. On a bonus episode of the ABA Banking Journal Podcast — sponsored by ProfitStars, a division of Jack Henry and Associates — two ABA experts provide an overview of the MSLP. Among other topics, Hu Benton and Shaun Kern discuss: How MSLP, as a loan program with a degree of risk retention, differs from the Small Business Administration’s Paycheck Protection Program. This week’s changes to MSLP term sheets, including some advocated by ABA. Areas where ABA is recommending further changes, including on minimum loan sizes and on reference rate choice. This episode is sponsored by ProfitStars, a division of Jack Henry and Associates. Additional resources: ABA resources on the Main Street Lending Program. Federal Reserve FAQs on the MSLP.
