Main Street Lending Program Vs Ppp

The main street lending program is a new program from the federal reserve board that offers loans for small and midsize businesses.

New york city jail visit settlement. Thanks to intense and frequent promotion most owners of smbs know about as the paycheck protection program ppp especially now that ppp rules have been relaxed making loans easier to use by those who get them. The main street lending program loans administered by the federal reserve are not forgivable. Main street loan program.

The differences for banks and how they can leverage lessons learned. However another government loan known as the main street lending program mslp. Google tag manager oct 14 1121 pm edt.

Based on our experience deploying digital solutions at 15 financial. Qualified candidates are us companies with less than 10000 employees and with revenues less than 25 billion per year. Under the main street lending program the federal reserve purchases 95 of loans made to small and medium sized businesses and non profits.

Issuing banks must retain 5 of the loans. This could make main street a better option for businesses that think theyll be in a better position to make payments in a year rather than six months from now. With the paycheck protection program ppp currently tapped out the federal reserves new main street lending program may look like your next best option for funding.

If youre seeking financing for your small business compare the main street lending program and ppp how they work and when the application deadlines are. The ppp loans managed by the small business association are forgivable as long as they are used for payroll and other specific expenses under the loan parameters. Features editor diana ransom.

Banks faced a high volume of loan requests for the sba payroll protection program ppp and that will likely be the case for the main street lending program set to roll out. While the main street lending program might not offer forgiveness you dont need to start making payments until six months after ppp payments kick in. However they do have considerably low interest rates compared to other business loans.

Unlike ppp loans which may be forgiven provided borrowers meet certain conditions primarily related to keeping employees on the payroll the main street lending program functions more like a traditional loan although it comes with significantly low interest rates says inc.