As the coronavirus pandemic continues, the Federal Reserve has announced plans to provide an additional $ 2.3 trillion in loans to help support households and local governments. The plan also includes allocating $ 600 billion in loans under its Main Street lending program, which will go to support small and medium-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 provide small and medium-sized businesses that hire up to 10,000 workers and have a turnover of less than $ 2 billion. dollars, 4-year loans that can be disbursed by specific banks. These loans will be at least $ 1 million and the banks will allow deferred interest payments for one year. The banks will also keep a 5% share of the loan and sell the remaining 95% at a predetermined facility put in place by the Fed.
“The role of the Fed is to provide as much relief and stability as possible during this period of limited economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible,” said Jerome Powell. , Federal President in the article. .
In addition to the Main Street Loan Program, as reported by ATM market, the Fed also plans to support loans generated under the paycheck protection program.
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