adminThe NCUA is encouraging credit unions to participate in the Federal Reserve System’s Main Street Lending Program, administered by the Federal Reserve Bank of Boston. The program is designed to help credit flow to small- and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic.
Because the Federal Reserve provides 95% of the loan and the credit union provides 5%, credit unions can assist their members with minimal risk exposure. The credit union will service the loan.
The program offers five-year loans with floating rates and principal and interest payments deferred to assist businesses facing temporary cash flow interruptions. With businesses of all sizes facing challenges during the pandemic, loans range from $250,000 to $300 million and are intended to support a broad set of employers.
