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U.S. banks look for term modifications as Fed settles Main Street Financing Program

Byindianadmin

Apr 19, 2020 #lending, #Program
U.S. banks look for term modifications as Fed settles Main Street Financing Program

WASHINGTON (Reuters) – U.S. banks are pressing the Federal Reserve to alter the terms of a $600 billion financing program for small and medium-sized services, consisting of reducing minimum loan sizes and permitting more flexibility on underlying recommendation rates, market groups said.

FILE PHOTO: Federal Reserve Board structure on Constitution Avenue is visualized in Washington, U.S., March 19,2019 REUTERS/Leah Millis

Over the previous couple of days, Washington-based bank groups have actually offered the Fed feedback on the terms of the Main Street Financing Program designed to help reduce the economic effect of the coronavirus outbreak. The program was revealed on April 9 and is due to launch in coming weeks.

As part of that program, banks will make loans to eligible small and medium-sized companies and the Fed will then purchase 95%of the loan through a special-purpose vehicle. The Fed ask

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