Fed Names Banks in $600 Billion Main Street Lending Program
By Paul Kiernan
WASHINGTON -- The Federal Reserve published a partial list of
banks and credit unions participating in its Main Street Lending
Program in a bid to drum up interest in the program designed to
help small and midsize companies weather the recession caused by
the coronavirus pandemic.
The Boston Fed, which is running the program, posted a
state-by-state list of more than 80 lenders that will accept new
loans under the program, which officials say has the capacity to
extend up to $600 billion in credit but has so far attracted
Among the country's top five banks by assets, only Bank of
America Corp. was listed. The other four -- JPMorgan Chase &
Co., Wells Fargo & Co., Citigroup Inc. and U.S. Bancorp -- all
said they intend to use the Main Street program, though not
necessarily for new customers.
The list published Tuesday only includes lenders that chose to
be named. Fed Chairman Jerome Powell last week said that around 300
lenders had begun the registration process for the program, which
was announced in April and opened for lender registration on June
15. They are among the almost 11,000 federally insured banks and
credit unions that could be eligible to sign up.
Still, the list suggested large state-by-state disparities in
the number of participating institutions, ranging from 13 in Texas
to just one each in Hawaii and South Dakota.
Bankers have expressed doubts in recent weeks that the Main
Street program's terms will allow it to reach many borrowers,
particularly those most in need.
But Boston Fed President Eric Rosengren said in a press release
that the central bank has "seen thousands of businesses express
interest" in the program, which offers loans ranging from $250,000
to $300 million.
"Now that the program is fully operational and ready to purchase
loan participations, we encourage more lenders to register," Mr.
Rosengren said. "The list of participating lenders is likely to
grow as more and more banks register."
Write to Paul Kiernan at email@example.com
(END) Dow Jones Newswires
July 08, 2020 16:22 ET (20:22 GMT)
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