The Federal Reserve announced Friday that it will adjust its Main Street lending program to better support small businesses still reeling from the coronavirus pandemic.
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The U.S. central bank said it is lowering the minimum amount that can be borrowed by small- and medium-sized businesses to $100,000 from $250,000. The fees have also been adjusted to encourage the smaller loans.
The program is designed to help businesses that were too big to tap the government-backed Paycheck Protection Program, but too small to access other avenues of relief offered by the central bank. Companies that were on sound financial footing pre-crisis and damaged only by the virus outbreak can access the program, available to firms with up to 15,000 employees and $5 billion in revenue.
The $2.2. CARES Act signed into law at the end of March provided $454 billion for the Treasury to backstop the various lending programs offered by the Fed.
Fox Business' Jennifer Schoenberger contributed to this report