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Fed's Main Street adds $13 mln in loans, discloses early borrowers

by Latosha Michel (2020-11-08)

By Dan Burns

Aug 6 (Reuters) - The Federal Reserve added another $13 million in loans in the latest week under its new Main Street Lending Program for U.S.

Small Business Answers - Best stay at home job?I have 3 ...small and midsize businesses struggling during the coronavirus pandemic, and the central bank disclosed the largest loan so far went to a resort in Pennsylvania's Pocono Mountains.

The total balance of outstanding Main Street loans rose to $95 million in the week ended Aug.

5 from $82 million a week earlier, according to data released by the Fed on Thursday.

The program, under which the Fed will buy 95% of a loan initiated by a private lender to a qualified business, has extended credit to just a handful of borrowers since launching last month.

The largest - $50 million - was to Mount Airy #1 LLC, operator of the Mount Airy Casino Resort in eastern Pennsylvania, according to a monthly disclosure to Congress by the Fed.

The 5-year loan, originated by FNCB Bancorp's FNCB Bank, carries an interest rate of 3.27%.

The next largest was the program's first-ever loan, $12.3 million to a dental practice network in Wisconsin. Also maturing in five years, the loan has an interest rate of 3.17% and was initiated by Starion Bank in North Dakota.

In its first month of operation, the program generated eight loans totaling $80.9 million.

City National Bank of Florida is the highest volume lender under the program so far, accounting for six of the eight loans, which ranged from $1.5 million to a Miami real estate brokerage to $5. If you liked this post and you would like to get far more facts pertaining to and let the professionals do your roof restoration. We also offer free quotes and estimates!;, kindly pay a visit to our internet site. 5 million for a Fort Lauderdale roofing company.

Some lawmakers have criticized the Main Street program's tepid take-up by businesses and banks, and Fed officials say they probably need to do more to help struggling smaller businesses.

"One area where financial conditions are not loose and we are seeing stress is in small, mid-sized businesses, particularly those in person-to-person contact industries," Dallas Federal Reserve President Robert Kaplan said earlier on Thursday.

"I think there is probably a debate to be had, what can we do to continue to help small businesses." (Reporting by Dan Burns; Editing by David Gregorio)