The Boston Federal Reserve released its initial list of banks that will be participating in the Federal Reserve's Main Street Lending Program, and only one mega bank was on the list -- Bank of America (NYSE:BAC)
Bank of America was also the only bank to be listed as a lender in all 50 states, plus Washington D.C.
Beyond Bank of America, only one other top 10 bank, Truist (NYSE:TFC), was on the list of participating banks. Truist will provide loans in 16 states, followed by KeyBank (NYSE:KEY), which was listed as a lender in 15 states.
Among other lenders, BBVA (NYSE:BBVA) was in 12 states; Citizens (NYSE:CFG) was in 12 states; Zions Bancorporation (NASDAQ:ZION) was in 10 states; Fifth Third (NASDAQ:FITB) was in eight states; People's United (NASDAQ:PBCT) was in seven states; and Synovus (NYSE:SNV) was in five states.
The $600 billion Main Street Lending Program was established by the Federal Reserve to provide loans for small- and mid-sized businesses to get through the COVID-19 crisis.
Image source: Getty Images
The program offers five-year loans with floating rates, and principal and interest payments deferred. The loans are in the range of $250,000 to $300 million. After making the loans, the banks then sell 95% interest in the loan to the Federal Reserve to collect on it, backed by the Treasury if the businesses don't repay. The lender retains 5% of the loan.
Federal Reserve Board Chairman Jerome Powell said this week that about 300 banks had signed up to participate. However, banks are "not getting a ton of interest from borrowers," Powell said in a Congressional hearing this week.
The list of participating banks will be updated regularly as more lenders register and are added to the list.
Both Bank of America and Truist were down about 1% in trading on Wednesday.
Business - Latest - Google News
July 09, 2020 at 02:03AM
https://ift.tt/2Oa9wA2
Bank of America Only Big Bank Participating in Main Street Lending - The Motley Fool
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Bank of America Only Big Bank Participating in Main Street Lending - The Motley Fool"
Post a Comment