The Federal Reserve Board took an important step this week to extend financial assistance to small and medium-sized business struggling through the coronavirus pandemic.
It lowered the minimum loan amount, raised the maximum loan limit, adjusted the repayment schedule to begin after two years and extended the repayment term to five years. These all are important steps to make more businesses available for financial aid in the Main Street Lending Program with greater flexibility to repay the loans.
The board also announced it is working to soon establish a similar loan program for nonprofit organizations.
In related news, President Trump has signed a bill that loosens requirements on hundreds of billions of dollars in forgivable small business loans. It extends the duration of the Paycheck Protection Program from the original eight weeks up to 24 weeks. This allows businesses more time to use the money and still have the loans forgiven.
