The Federal Reserve made changes to its Main Street lending program so more small and medium-sized businesses can participate. The program is for businesses affect by the coronavirus pandemic.
On Monday, it said it's lowering its initial loan minimum and raising the maximum that can be borrowed. It's also expanding the loan terms to five years, among other changes.
Loans can now range in size from $250,000 to $300 million. Previously, the cap was at $200 million.
In a statement, Federal Reserve Chairman Jerome Powell said: "Supporting small and mid-sized businesses so they are ready to reopen and rehire workers will help foster a broad-based economic recovery. I am confident the changes we are making will improve the ability of the Main Street Lending Program to support employment during this difficult period."
The Fed is also delaying the repayment period from one year to two years. Interest is also delayed for one year.
