Economic Policy Review
The Main Street Lending Program
Volume 28, Number 1
June 2022

JEL classification: E51, E65, G21, H12, H81

Authors: David Arseneau, José Fillat, Molly Mahar, Donald P. Morgan, and Skander Van den Heuvel

The Main Street Lending Program was created to support credit to small and medium-sized businesses and nonprofit organizations that were harmed by the pandemic, particularly those that were unsupported by other pandemic-response programs. It was the most direct involvement in the business loan market by the Federal Reserve since the 1930s and 1940s. Main Street operated by buying 95 percent participations in standardized loans from lenders (mostly banks) and sharing the credit risk with them. It would end up supporting loans to more than 2,400 borrowers and co-borrowers across the United States, with an average loan size of $9.5 million and total volume of $17.5 billion. This article describes the facility’s goals, its design, the challenges and constraints that shaped its reach, and the characteristics of its borrowers and lenders. The authors conclude with some lessons learned for future policymakers and facility designers.

Available only in PDF
Author Disclosure Statement(s)
David Arseneau
I, David Arseneau, declare that I have no relevant or material financial interests that relate to the research described in this paper.

José Fillat
I do not have anything to disclose with respect to conflicts of interest.

Molly Mahar
I, Molly Mahar, declare that I have no relevant or material financial interests that relate to the research described in this paper.

Donald Morgan
I have nothing to disclose in regards to the Main Street Lending Program paper.

Skander Van den Heuvel
I, Skander Van den Heuvel, declare that I have no relevant or material financial interests that relate to the research described in this paper.
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