COVID Response: The Main Street Lending Program

The Main Street Lending Program was created to support credit small and medium-sized businesses nonprofit organizations that were harmed by the pandemic, particularly those unsupported other pandemic-response programs. It most direct involvement in business loan market Federal Reserve since 1930s 1940s. operated buying 95 percent participations standardized loans from lenders (mostly banks) sharing risk with them. would end up supporting more than 2,400 borrowers co-borrowers across United States, an average size of $9.5 million total volume $17.5 billion. This article describes facility's goals, its design, challenges constraints shaped reach, characteristics lenders. We conclude some lessons learned for future policymakers facility designers.