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Powell Talks on Specifics of Main Street Lending Facility

FED

Q: Why did you reduce the minimum loan size under the main street facility last week, and why now rather than earlier, given small biz is struggling?

- A: We have had little demand below $1m dollars... We moved the minimum to $250k, and reluctant to do that, but we heard over and over that it would be great if we reduced it to $100k... We concluded we can change the fee structure to create incentives for that... We want businesses to be able to borrow and we'll see how much demand will come. We hope it will help some companies, I guess we'll find out.

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