More money may be available to hemp businesses as the Federal Reserve announced plans on Thursday to release up to $2.3 trillion in loans to help the U.S. economy through disruptions caused by the coronavirus crisis.
The announcement came just moments after the U.S. government reported that 6.6 million new jobless claims were filed last week.
“The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible,” Fed Chairman Jerome Powell said in a statement.
The funding will include a $600 billion Main Street Lending Program to support loans for small and mid-sized businesses.
Under the program, companies employing up to 10,000 employees or with revenues of less than $2.5 billion that are in good financial standing will be eligible for 4-year loans.
The loans:
- Will be disbursed through eligible banks.
- Allow for principal and interest payments to be deferred for a year.
- Can be granted in amounts of at least $1 million and up to a maximum of $25 million.
According to the Fed and the U.S. Treasury Department, the program is being finalized, and officials will seek public feedback about the program through April 16.
The Fed also said it would backstop loans generated under the Small Business Administration’s Paycheck Protection Program and support other programs.
