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The New $2.3 Trillion Stimulus Announcement

4 min read • Apr 09, 2020 • Bjolan Holyoak

Good news is buzzing across the country ever since the US Treasury and Federal Reserve Board announced an expansion and implementation of $2.3 trillion in lending programs to offer aid in this time of economic crisis. While details are still coming in, we want to share as much information as we can.

Good News for Bigger Businesses

With this new stimulus announcement, we’ve officially got wind of a program called the Main Street Business Lending Program or Main Street Lending Program. This program intends to complement the current Paycheck Protection Program (PPP), while also expanding aid opportunities to bigger businesses. Where the PPP capped eligibility for businesses with an employee count of 500 or lower, this new system plans to offer financial assistance to companies with up to 10,000 workers or a max of $2.5 billion in annual revenue for 2019. 

This $75 billion equity investment from the US Treasury will allow small and mid-sized businesses to obtain 4-year loans with a proposed 1-year deferment on principal and interest payments when they use the funds for maintaining payroll and retaining workers. While the exact requirements haven’t been provided in a handy list just yet, the Federal Reserve’s website states that borrowers will need to follow “compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act.” Additionally, small businesses applying for this new Main Street Business Lending Program may also take advantage of the PPP. So if you haven’t started your Paycheck Protection Program (PPP) loan application, now’s the time.

Other Exciting Developments

In addition to the creation of the Main Street Business Lending Program, the government has put its thinking cap to good use and cranked out several new developments that can help not only small businesses, but bigger corporations, cities, and even statewide initiatives.

Municipal Liquidity Facility (MLF)

The US Treasury declared it will make a $35 billion equity investment into the Municipal Liquidity Facility (MLF) to provide up to $500 billion in direct financing to cities, counties, and even entire states to help them respond to the coronavirus (COVID-19) pandemic. Not only will this initiative enable funding recipients to provide their citizens with the services they desperately need during this health crisis, but it should also help offset any short-term tax revenue losses caused by a reduction in business and consumer activity during the pandemic.

Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF)

Secretary Mnuchin of the US Treasury also approved a sizable expansion of existing facilities to continue offering economic support. In this expansion, the US Treasury will make a $75 billion equity investment in the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) to purchase eligible corporate debt. While the guidelines for what makes a particular bit of corporate debt eligible for purchase haven’t surfaced as of yet, the government claims these changes to the PMCCF and SMCCF will provide $750 billion in additional liquidity.

Term Asset-Backed Securities Loan Facility (TALF)

Following suit, the Term Asset-Backed Securities Loan Facility (TALF) is supposed to receive a similar $10 billion investment. From there, TALF has expanded its definition of what it considers eligible collateral. According to the US Department of the Treasury’s website, they now include “highly rated newly issued collateralized loan obligations and legacy commercial mortgage-backed securities as eligible collateral.” The TALF will continue to support the issuance of asset-backed securities used to fund a range of needs from student loans to credit card loans.

What Does All of That Mean?

In short, these exciting developments mean there will be more money available to those who need it. If the government owns up to its plans and executes everything as intended, we’ll, hopefully, start seeing fewer lost jobs, more paid employees, and businesses standing on solid ground as we all weather this economic storm caused by the coronavirus (COVID-19) pandemic. So keep your chin up, watch for updates, apply for a PPP loan if you’re eligible, and be ready to jump when the time comes. 


While every effort is made to ensure the accuracy of information when a story is published, the coronavirus pandemic and Paycheck Protection Program (PPP) have caused details to change at a rapid pace. Additional guidance from the government may change or clarify certain aspects of the forgiveness process and could result in changes to the information contained in these pages. For the most up-to-date information, please visit the COVID-19 section of our website. For more information, you can call us at (855) 853-6346. Lendio is not responsible for and provides no warranty as to the accuracy of this content. Lendio does not provide legal, accounting or tax advice. The information and services Lendio provides should not be deemed a substitute for the advice of such professionals who can better address your specific concern and situation.


Bjolan Holyoak

Bjolan Holyoak is a small business finance writer based in Utah. As a copywriter for Lendio, he fuels the American Dream by giving small business owners the information they crave. He believes that with the right panache, financial information can be as much of a "breath of fresh air" as a hike in the Utah mountains.