Landmark Fed business rescue struggles amid economy's woes

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The Federal Reserve’s $600 billion “Main Street” lending program, designed to rescue companies whacked by the coronavirus pandemic, is sputtering just weeks after it was launched

, doling out only a handful of loans.The emergency program, aimed at midsize companies, isn’t open to businesses with high levels of debt — including hotels with big mortgages, as well as firms that were already struggling before the crisis, like certain retailers and oil and gas companies. And many banks are reluctant to participate because they still have to do extensive underwriting and face risk if a loan defaults.

For the most part, the central bank’s actions have earned praise for stabilizing financial markets and keeping credit flowing. But some programs, like Main Street and a separate lending facility for state and local governments, have barely gotten off the ground. The congressional commission set up to oversee the Fed and Treasury's emergency efforts will hold a hearing on the program on Aug. 7.

The official and banks say borrower demand is not especially high right now — either because businesses are able to get loans through conventional means or because they’re not looking for financing right now for new projects and equipment. The bank official said the program in particular makes sense for otherwise healthy borrowers who have higher uncertainty as to when they’ll be able to be able to function normally again, a type of company that banks would be more hesitant to lend to on their own.

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that makes you Happy,,,,,,,,,,,,don't it ! 💩

RepublicansCannotGovern

Where does the $600 billion come from? We need to hold CCPChina responsible for all the damages we incurred.

Hahahaha, what a mess

republican incompetence

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