St. Paul, Minn. | November 16, 2020 – The Federal Reserve is temporarily offering the Main Street Lending Program to support lending to small and medium-sized for-profit businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic.
The Main Street Lending Program aims to keep credit flowing to small and mid-sized organizations to maintain operations through the pandemic. The program offers 5-year loans with floating rates and principal and interest payments deferments. The loan size varies from $100,000 to $300 million, depending on the business type and size.
Main Street Lending Program loans are underwritten and approved by eligible lenders. The Federal Reserve participates in the program by purchasing 95% of the loan. The lender retains 5%. Drake Bank is an eligible lender for the Main Street Loan Program.
“The pandemic continues to hit our local business community.” said Greg Larson, President and CEO at Drake Bank, “As a local community bank, we want to be able to offer our business community the support they need to continue operations during these times. Consistent with our mission to build a better future for our community, our team is committed to assisting current and future clients in navigating the programming options available, including the Main Street Lending program.”
As an eligible lender for the Main Street Program, SBLG Program, and as an SBA preferred lender, Drake Bank bankers continue to monitor the rapidly changing events related to COVID-19 closely. While the bank lobby is temporarily closed, our mortgage, consumer, and business banking teams continue to help our clients find options that make sense for their unique situations. You can contact them via email or phone at customerservice@drake-bank.com or (651) 224-5000 with any questions.
Drake Bank is a purpose driven independent bank in St. Paul. We were founded in 2002 by a group of successful entrepreneurs committed to helping others succeed for the shared prosperity of their community. Our 70+ founders invested their own money to fund the first business loans and many are still shareholders today. Start building a better future with us. Learn more at drake-bank.com.
