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Updated Main Street Lending Program FAQs Released

Updated Main Street Lending Program FAQs Released

Posted: Sep 30 2020
Late last week, the Federal Reserve issued updated FAQs clarifies the expectations for lenders underwriting Main Street Lending Program (MSLP) loans.  In particular, the Fed emphasizes that banks should consider the borrower’s pre-pandemic condition and their post-pandemic prospects.

The FAQs also clarify that “supervisors will not criticize eligible lenders for originating Main Street loans in accordance with the program’s requirements, including cases where such loans are considered non-pass at the time of origination, provided these weaknesses stem from the pandemic and are expected to be temporary or if such loans are part of a bank’s prudent risk mitigation strategy for an existing borrower.”

To read more, visit: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200918a.htm
 

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