What eligibility criteria changed for the Main Street programme?

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Changes to Eligibility Criteria for the Main Street Lending Programme

The US Federal Reserve has expanded the eligibility criteria for its Main Street Lending Programme, increasing the maximum size of businesses that can receive support. These adjustments aim to provide assistance to a broader range of small and medium-sized businesses impacted by the economic downturn.
Increased Employee and Revenue Ceilings

The programme now accommodates businesses with up to 15,000 employees, a significant increase from the previous limit of 10,000 employees. Furthermore, the annual revenue threshold has been raised to US$5 billion (approximately RM21.5 billion), up from the initial US$2.5 billion. These expanded limits allow larger firms that were previously ineligible to now qualify for the programme's financial support.
Lowered Minimum Loan Size

In addition to increasing the size of eligible businesses, the Federal Reserve has also reduced the minimum loan amount available through the Main Street Lending Programme. The minimum loan size has been lowered to US$500,000, down from the original US$1 million. This reduction is intended to make the programme accessible to businesses requiring smaller loan amounts.
Rationale for Expansion

The modifications to the Main Street Lending Programme were implemented after the Federal Reserve received feedback from numerous businesses. The central bank's objective is to support companies that are too large to benefit from the Paycheck Protection Programme but too small to readily access capital markets for financing. By widening the programme's aperture, the Fed seeks to provide a crucial financial lifeline to a more diverse set of businesses during the ongoing economic challenges.

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What eligibility criteria changed for the Main Street programme?

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