Economics

Fed Encourages Banks to Start Making Main Street Loans

  • Fed will begin buying 95% of eligible facility loans “soon”
  • Program announced in March as part of pandemic response
The Federal Reserve building in Washington.Photographer: Andrew Harrer/Bloomberg
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The Federal Reserve has opened its Main Street Lending Program for small and mid-size businesses, encouraging lenders to start making loans in the much-anticipated program immediately.

Lenders are now able to register through the Boston Fed, which will administer it. The Fed will begin purchasing 95% of loans made through the program’s three facilities “soon,” the Boston Fed said on its website Monday.