Thursday, June 18, 2020

NCUA Urges CUs to Participate in Fed's Main Street Lending Program

The National Credit Union Administration on June 17 urged credit unions to participate in the Federal Reserve's Main Street Lending Program, if appropriate.

The Program is designed to help credit flow to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic.

The program offers 5-year loans, with floating rates, and principal and interest payments deferred. The loans range in size from $250,000 to $300 million.

The loans will be offered as a participation with the Federal Reserve providing 95 percent of the loan and the credit union providing 5 percent. Credit unions will service the loans.

Read a review of the program.
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