Federal Reserve set to make up to $600 billion available to eligible small and mid-sized businesses.

By Alan W. Avery, Courtenay Myers Lima, and Pia Naib

On April 9, 2020, the Board of Governors of the Federal Reserve System (Federal Reserve) announced details regarding the terms and conditions of two Main Street lending facilities to support small and mid-sized businesses that were “in good financial standing” prior to the COVID-19 emergency: the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF, and together with the MSNLF, the Main Street Lending Facilities).

This Client Alert provides answers to frequently asked questions about the initial term sheets for the Main Street Lending Facilities, including what types of loans are available under each facility, who is eligible for relief, and what the terms and conditions are for loans under the facilities.