May 20, 2020

Senate Hearing Reveals Main Street Lending Program Could Begin in May

Summarized from Jade West, National Association of Wholesaler-Distributors

During a Senate hearing Tuesday, May 19, Federal Reserve Chairman Jerome Powell told legislators that the long-awaited Main Street Lending Program (MSLP) should be operational by the end of May or early June, with funds flowing shortly afterward.

The MSLP was created as part of the CARES Act in March and is aimed at supporting small and medium-sized businesses that were in found financial condition before the COVID-19 crisis began. However, the launch of the lending program has been delayed as the U.S. Treasury and Federal Reserve have prioritized other recovery and relief efforts.

In addition to commenting on a possible start time frame for the MSLP, Powell told senators that the Federal Reserves’ larger lending facilities are just coming online, so the infusion of resources into the economy to date has been modest.