Federal Reserve Chairman Jerome Powell reportedly told Princeton University economist Alan Blinder on Friday that Main Street loans are just days away. [Forbes]
The loans are designed for mid-sized businesses that are too big for previous stimuli but too small to issue their own debt.
The loans will range in size from $500,000 to $100 million. After the loans are issued, the Fed has promised to buy 85-95% of the loans in order to mitigate the pain for banks.
Powell said that despite the challenges of ‘getting in’ to the mid-sized business market, the Fed must proceed. Loan forms for businesses were released Monday, and evaluations will begin in June.
The Fed balance sheet has burgeoned by $3 trillion already in just 90 days. Stocks and other assets like Bitcoin have seen markets return to near pre-COVID levels, as liquidity has increased substantially.