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The Federal Reserve Monday announced changes to its Main Street Lending Program – a collection of facilities established as part of the Fed's effort to support the economy and businesses amid the coronavirus pandemic – to allow more small and mid-sized businesses access to funds.

The Fed announced in April that it would provide up to $2.3 trillion in loans to businesses, households, and state and local governments through new and expanded programs and facilities. The Fed, in Monday's announcement, indicated it is also working to establish a program for nonprofit organizations.

The changes to the Main Street Lending Program include:

• lowering the minimum loan size for certain loans from $500,000 to $250,000;
• increasing the maximum loan size for all facilities;
• increasing the term of each loan option from four years to five years;
• extending the repayment period for all loans by delaying principal payments for two years, rather than one; and
• raising the Reserve Bank's participation to 95 percent for all loans.

Eligible lenders under the Main Street Lending Program are U.S. insured depository institutions, bank holding companies, and savings and loan holding companies. The program is funded with $600 billion, with the Treasury Department providing $75 billion from funds allocated by the CARES Act, and is scheduled to run through Sept. 30, 2020.

In addition, businesses that are eligible to receive loans through the Small Business Administration's paycheck protection program are eligible to apply for Main Street loans.

Additional information on loan terms is available online.