Fed Opens Main Street Program for Lender Registration

The Boston Fed has opened the Main Street program for bank registration, urging banks to start making loans immediately. The program targets medium-sized businesses with up to 15,000 employees or $5 billion in revenue. Loans range from $250,000 to $300 million, with the Fed purchasing 95% of each loan to encourage participation. Concerns remain about whether the program will attract enough participants and if it is timely enough to be effective.

What is the role of the Boston Fed in the Main Street program?

• To administer the program and register banks

• To set interest rates for the loans

• To offer grants to small businesses

• To provide direct loans to businesses

What is the maximum number of employees a business can have to qualify for the Main Street program?

• 10,000 employees

• 20,000 employees

• 5,000 employees

• 15,000 employees

What is the range of loan amounts available through the Main Street program?

• $500,000 to $400 million

• $100,000 to $200 million

• $250,000 to $300 million

• $1 million to $500 million

What percentage of the loans will the Fed purchase in the Main Street program?

• 100%

• 95%

• 75%

• 50%

What is a concern regarding the Main Street program?

• The application process is too complex

• It only targets large corporations

• It may be too little, too late

• The interest rates are too high