The Main Street Lending Program: Who Borrowed and How Have They Benefited?
Shortly after the onset of the COVID-19 pandemic, the Federal Reserve established the Main Street Lending Program (MSLP). The program was designed to help midsize (250 to slightly more than 500 employees) and small businesses survive the economic disruptions caused by the pandemic and associated public health measures. Using the Dun & Bradstreet database, this study compares firms that borrowed from the Main Street Lending Program with their peers to understand which characteristics and circumstances made it more likely for firms to seek MSLP credit and how the program benefited them afterward. The findings help evaluate the extent to which the MSLP reached the subset of businesses it was designed to target and its efficacy in providing liquidity to alleviate financial strains on firms.