A Congressional Panel overseeing the Main Street Lending Program (the “Program”) has indicated that its utilization to date dwarfs the lending capacity of the Program. As of mid-August, eligible lenders participating in the Program had issued $496.8 million in loans, backed by $472 million in Federal Reserve loan purchases. This level of utilization reflected only 0.07% of lending capacity for the $600 billion Federal COVID related loan assistance program. A subsequent update provided by the Fed’s Board of Governors on September 7, 2020 indicated $1.07 billion in loans made by the Federal Reserve to the MSLP Special Purpose Vehicle to permit loan purchases, illustrating a marked increase in activity from mid-August but still not an overall robust utilization of the Program, which was launched on July 6, 2020.
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