Federal Reserve and Treasury Department Programs to Help Local Communities Weather Coronavirus Outbreak
U.S. Senator Roger Wicker, R-Miss., today announced his support for new actions being taken by the Federal Reserve and the Treasury Department to provide up to $2.3 trillion in financing for businesses, states, counties, and cities impacted by the coronavirus pandemic. The actions announced today are a direct result of guidance provided to the Federal Reserve and Treasury by Congress in the recently passed coronavirus relief packages.
“These new programs are great news for the millions of Americans who have been experiencing financial hardship through no fault of their own as a result of the coronavirus outbreak,” Wicker said. “Additional federal backing for short-term loans for small and mid-sized businesses alongside targeted relief for municipalities will help companies keep employees on their payrolls and ensure our communities recover once this pandemic ends.”
Up to $600 billion will be made available to the “Main Street Business Lending Program” and up to $500 billion will go to the Municipal Liquidity Facility (MLF) to provide direct financing to states, counties, and cities to help ensure they have the funds necessary to provide essential services to citizens and respond to the coronavirus pandemic. Treasury also announced an expansion of existing programs that will bring the total value of relief to $2.3 trillion. The actions announced today are a direct result of guidance provided to the Federal Reserve and Treasury by Congress in the recently passed coronavirus relief packages.
The Main Street Business Lending Program will offer 4-year loans to small and mid-sized companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Eligible banks may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses that were in good financial standing before the coronavirus outbreak. Borrowers will have to follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act.
The MLF will provide funds to eligible states and large municipalities to help offset the delay in state and local tax receipts caused by the deferral of the tax filing deadline, and to help offset any short-term losses in tax revenues resulting from reduced business and consumer activity due to the coronavirus pandemic. States may use the proceeds to support additional counties and cities.
For more information on these announcements and other relief programs for businesses, visit the Treasury Department’s website: https://home.treasury.gov/cares.
Mississippi residents can also visit https://www.wicker.senate.gov/coronavirus-resources for links to additional federal, state, and local resources available to help combat the effects of the coronavirus outbreak.