Main Street Lending Program: From Pandemic Relief to Business Burden
The Federal Reserve's Main Street Lending Program, initially designed to support mid-size businesses during the pandemic, is now causing financial strain for some companies due to high interest rates and large balloon payments. This has led to layoffs as businesses struggle to manage the debt. The program provided 1,830 adjustable-rate loans ranging from $100,000 to $300 million, targeting businesses too large for the Paycheck Protection Program but too small for capital markets.