We stand by our customers and we are here to help. While we are committed to supporting our customers and our community we will continue to provide personalized service now and always. We participated in the SBA’s Paycheck Protection Program and we will continue to assist our customers and our community now that the Payment Protection Program has come to an end. We are and will continue to work closely with you in hopes of assessing your options going forward. There may also be other federal programs that could help any small businesses unable to participate in PPP such as the Fed’s Main Street Lending Program. We believe that Congress should extend PPP by providing additional federal funds as soon as possible and we urge our customers to make sure their PPP paperwork remains in order in the event that Congress does provide additional funding in the near future.
Please note the following information regarding the Federal Reserve’s recently announced lending programs located on federalreserve.gov. As the programs are finalized we will provide additional information as it becomes available.
Main Street Lending Program: Main Street New Loan Facility (MSNLF) and Main Street Expanded Loan Facility (MSELF)
The Federal Reserve established the Main Street Lending Program to enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Eligible banks may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses. Banks will retain a 5 percent share, selling the remaining 95 percent to the Main Street facility, which will purchase up to $600 billion of loans. Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers. Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act. Firms that have taken advantage of the PPP may also take out Main Street loans.
The Federal Reserve and the Treasury recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds. Comments may be sent to the feedback form until April 16.