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.

How much of the loans will the Fed buy according to the text?

What is the significance of banks holding 5% of the loans?