On April 9, 2020, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) unveiled two new facilities in response to the ongoing COVID-19 pandemic, both pursuant to Section 13(3) of the Federal Reserve Act (“Section 13(3)”). The facilities, seeded with funds allocated to Federal Reserve lending programs under the CARES Act, are directed at facilitating lending to small- and medium-sized businesses: the Main Street New Loan Facility (“MSNLF”) and the Main Street Expanded Loan Facility (“MSELF”) (together, the “Facilities”). Please see our previous client alert, Federal Reserve Expands Credit Facilities to Aid Economy During COVID-19 Crisis, for summaries of the Facilities.
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