August 4, 2020

Volume X, Number 217

August 03, 2020

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Fed Paves the Way for Main Street Lending Programs

On April 9, 2020, the Board of Governors of the Federal Reserve System released term sheets outlining two new lending programs under the CARES Act: (1) the Main Street New Loan Facility, and (2) the Main Street Expanded Loan Facility.

These programs are aimed at paving the way for increased lending to small and medium-sized businesses impacted by COVID-19. Under these facilities, a Federal Reserve Bank will commit to lend to SPVs, who in turn will purchase 95% participations in certain eligible loans made by U.S. banks and savings and loan institutions. Eligible lenders would hold 5% of each eligible loan. The combined size of the facilities will be up to $600 billion.

This summary briefly describes the lending programs, and compares and details them in an easy-to-digest chart. We note that adjustments to these programs may be made in the future.

Please click the image below for an in-depth look at the loan facilities.

Fed Mainstreet

© 2020 Vedder PriceNational Law Review, Volume X, Number 103

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About this Author

Michael A. Nemeroff, Vedder Price Law Firm, Finance Attorney
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Michael A. Nemeroff is President and CEO of Vedder Price and Chairman of the Finance and Transactions group. He is also a member of the Executive Committee of the firm’s Board of Directors.

Mr. Nemeroff counsels corporations in mergers and acquisitions transactions and governance matters. He provides private equity firms and hedge funds with experienced direction in leveraged and management buyouts and guides financial institutions in complex finance transactions. Further, Mr. Nemeroff negotiates and structures executive compensation...

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Daniel J. Robot Finance & Transactions Practice Vedder Price Chicago, IL
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Daniel J. Robot is an Associate in the Chicago office of Vedder Price and a member of the firm’s Finance & Transactions practice group.

While in law school, Mr. Robot was a notes and comments editor of the University of Illinois Law Review, and was president of the Jewish Law Students’ Association.  He also participated in the Community Preservation Clinic at the University of Illinois, where he represented clients through the McLean County, IL foreclosure mediation program. Mr. Robot was also the recipient of the CALI Excellence for the Future Award in Aircraft Finance, and is a member of the Order of the Coif for graduating in the top 10% of his class.

Prior to attending law school he was a business analyst for a software start-up in Chicago, IL.  In this capacity, Mr. Robot managed an offshore software development team, and he also  designed, developed and sold enterprise software catering to a variety of industries.

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Venu V. Talanki Finance & Transactions Practice Vedder Price Chicago, IL
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Venu V. Talanki is a Shareholder at Vedder Price and the Vice Chair of the Finance & Transactions group. He is also a member of the firm's Board of Directors.

Mr. Talanki focuses his practice in the areas of finance, mergers and acquisitions, and corporate law. He advises financial institutions, private equity funds and corporate borrowers in a broad array of finance transactions, including leveraged, asset-based, cash flow, mezzanine, second lien, acquisition and bankruptcy-related lending transactions. He also counsels lenders and borrowers in complex restructurings and...

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