MNI POLICY: Mnuchin Sees Fed's Main St Rising to $25B-$50B

Treasury Secretary Steven Mnuchin told Congress Tuesday the department estimates the Fed's Main Street Lending Program could see USD25-USD50 billion in loans supporting small- and medium-sized businesses.

"You're going to see a lot of volume over the next two months," Mnuchin said.

The Main Street Facility has so far disbursed just USD855 million compared with the USD75 billion in designated Treasury equity. The Fed had said that could backstop USD600 billion in loans.

"A lot of businesses have been able to access bank financing so they won't need Main Street and unfortunately many won't be able to access Main Street because they have significant problems and they don't need more debt," he said.

FOCUS ON PPP

Mnuchin also wants to see the remaining USD134 billion in PPP funds that expired be extended and increased with an additional USD120 billion from Congress to support small businesses.

"Businesses don't need more debt through Main Street loans and that is why we need more PPP" grants, he said.

An extension of PPP, though popular in Congress, has been tied to a larger fiscal relief package that has remained stalled in Washington.