Fed reduced the minimum loan scale from $ 500,000 to $ 250,000 in the loan program for small and medium-sized businesses, launched to alleviate the economic impact of the COVID-19 outbreak
The US Federal Reserve (Fed) has reduced the minimum loan scale from $ 500,000 to $ 250,000 in the loan program for small and medium-sized businesses, which it introduced to mitigate the economic effects of the new type of coronavirus (COVID-19) outbreak.
The Fed announced that the scope of the Main Street Lending Program, launched to support the credit flow for small and medium-sized businesses, has been expanded to allow more businesses to receive support.
In the statement, which emphasized that small and medium-sized enterprises are a vital part of the economy, it was stated that the credit program in question was revised in line with the needs and feedback of these enterprises.
In the statement, it was noted that the minimum loan scale was reduced from $ 500 thousand to $ 250 thousand, while the maturities of loan options were increased from 4 to 5 years.
The Fed’s statement stated that principal payments were delayed for 2 years, and the repayment period for all loans was extended.
“Supporting small and medium-sized businesses, thus making them ready to reopen and create jobs, will help foster broad-based economic recovery,” Fed President Jerome Powell, who said in the statement. found the assessment.
Powell said the arrangements will improve the ability of the Main Street Lending Program to support employment during this challenging period.