"In response to Coronavirus Disease 2019 (COVID-19), the Federal Reserve (Fed) created a series of emergency lending programs, including the Main Street Lending Program (MSLP). The MSLP supports lending to eligible businesses and nonprofits and marks the first time the Fed has lent to nonfinancial businesses since the1930s (though it purchased commercial paper[short-term debtsecurities] issued by nonfinancial businesses in 2008 and 2009).
COVID-19 and Main Street Businesses
Due to the effects of COVID-19, the U.S. economy has
experienced a sudden and deep recession. The
unemployment rate hasreached its highest level since the
Great Depression, and the decline in output in the second
quarter of 2020 was record-breaking. Normal commerce
was severely disrupted starting in March and has only
partially recovered in the following months. Social
distancing and fears of the virus hit many “main street
businesses”in retail and hospitality industries particularly
hard. Many disrupted businesses, even if solvent prior to
COVID-19, began to experience cash flow problems and
faced difficult decisions abouthow to stay in business..."
Federal Reserve
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