As many small and medium businesses struggle, where are the main street loans?

As America’s small and medium-sized businesses struggle to survive the new economic reality of COVID-19, politicians continue to debate when and how they will further help the lifeblood of the economy. American. And while the Paycheck Protection Program is the best-known and most widely used program of the First Aid Round, at least one essential program has been vastly underutilized to date: the Payroll Loan Program. main Street.

The MSLP is one of the major economic programs created by Congress under the CARES Act. Similar to PPP, MSLP is intended to use the existing banking system to provide assistance to struggling businesses. Under the program, financial institutions can provide term loans to eligible borrowers and then sell 95% of those loans to the Federal Reserve. Financial institutions are supposed to guarantee, manage and hold 5% of these loans.

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