The Federal Reserve’s Main Street Lending Program for the US small and medium-sized businesses facing tough times due to the coronavirus pandemic saw the largest weekly uptake on record, data released on Thursday showed.
Main Street loans held by the central banks rose by $131 million to $226 million as of Wednesday from $95 million a week earlier, as noted by Reuters News.
Under the Main Street Lending Program, the central bank buys 95% of a loan initiated by a private lender to a qualified business. The program launched last month saw limited use until last week. Officials now foresee a spike in interest.
“The low use of the program early on is not a sign of failure and more businesses may turn to the facility in the fall if the economy worsens,” Boston Federal Reserve President Eric Rosengren, who is managing the program for the Fed, said on Wednesday.
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