The Fed's Main Street Lending Program is now open and encouraging banks to start making loans

• The Federal Reserve's Main Street Lending Program opened on Monday to lender registration, meaning that banks can now sign up to make loans through the program.
• The Boston Federal Reserve, which is administering the program, said Monday that it will soon begin purchasing 95% of loans made through the three lending facilities.
• The lending program was first announced in March as part of the Fed's sweeping emergency response to the coronavirus pandemic.
• Read more on Business Insider.

The Federal Reserve's Main Street Lending program is open and ready for lender registration, the Federal Reserve Bank of Boston announced on Monday.

Banks looking to lend to small and medium businesses are now able to register with the Boston Fed, which is the administrator for the $600 billion program with three separate lending facilities.

"Lenders can find the necessary registration documents on the program site and are encouraged to begin making Main Street program loans immediately," the Boston Fed said.

The Boston Fed intends to purchase 95% of each eligible loan submitted to the program, the regional central bank said Monday. It added that it will begin this purchasing of eligible loans "soon."

The Main Street Lending Program was announced in March as part of the Federal Reserve's sweeping emergency response to aid the US economy amid the coronavirus pandemic. It's the first time that the central bank will give direct support to Main Street businesses. The program is backed by funds that are part of the CARES Act for coronavirus relief.

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The three facilities established in the program will make different loans to businesses with up to 15,000 employees, or $5 billion in revenue last year. The loans will range from $250,000 to $300 million.

The Fed program is intended to reach businesses that may not be eligible for the Small Business Administration's Paycheck Protection Program, which gives loans to firms that have fewer than 500 employees.