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.
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