April 10, 2020
photo provided by iStock
As the coronavirus pandemic continues, the Federal Reserve released its plans to provide an additional $2.3 trillion in loans to help to support households and local governments. The plan also calls for earmarking $600 billion in loans through its proposed Main Street Lending Program, which will go to support small and mid-sized businesses, according to an article on Yahoo Finance.
Announced by the Federal Reserve on March 23, the Main Street Lending Program, which is still being finalized, will offer small and mid-sized businesses that hire up to 10,000 workers and has revenue less than $2 billion, 4-year loans that can be disbursed through specific banks. These loans will be for at least $1 million and the banks will permit interest deferred payments for one year. The banks will also retain a 5% share of the loan and sell the remaining 95% to a predetermined facility set up by the Fed.
“The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible,” said Jerome Powell, Federal Chairman in the article.
In addition to the Main Street Lending Program, as reported by ATM Marketplace, the Fed also plans to backstop loans generated under the Paycheck Protection Program.
For more information on how the coronavirus is affecting the ATM industry, click here.
Topics: Retail – General, Coronavirus / COVID-19