Fed Changes Regulations To Offer More Loans To Small Businesses

Fed Changes Regulations To Offer More Loans To Small Businesses
that much Fed On Friday it announced that it would issue loans up to $100,000 and lower loan fees. Previously, the minimum amount to borrow was $250,000.

“Banks don’t do business to lend money to failed companies,” said Best Western CEO David Kong, one of the corporate executives who wrote letters urging changes to the Main Street program. “Small businesses are struggling and can’t get help.”

that much Main Street Loan Program It is designed to support small businesses and nonprofits that were in sound finances prior to the Covid-19 pandemic, but now lack access to credit on reasonable terms.

To date, the program has made nearly 400 loans for a total of $3.7 billion, which averages about $9 million per loan.

Dali Payroll protection program Approved by Congress, A loan to be forgiven If money is spent on keeping an employee as an employee, you must repay the loan from the Main Street Lending Program. However, it gives lenders time to recover from the epidemic by deferring principal and interest payments.
Fed Chair Jerome Powell Call for parliament To provide more stimulus to support the US economy Press conference Last month he tried to change the terms of the program, but there were legal restrictions on what the Fed could do.

“Looking at the law… it’s very clear that we should only make loans to solvent lenders,” he said at the time. “We are constantly working to improve Main Street and make it more widely available. We can provide it to any company that needs and can provide loan services.”

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-CNN Business’s Matt Egan contributed to this report.

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