Federal Reserve expands loan program to include larger businesses

April 30 (UPI) -- The Federal Reserve said Thursday it will expand the Main Street Lending Program to include larger businesses struggling with the fallout of the coronavirus crisis.

The Fed said U.S. businesses with as many as 15,000 employees are now eligible. Previously, it was limited to businesses with fewer than 10,000 workers.

Companies that report as much as $5 billion in annual revenues are also eligible under the change.

The Main Street Lending Program is not related to the Paycheck Protection Program, which is strictly limited to smaller businesses with fewer than 500 employees.

The Fed also said Thursday it's expanding loan options, including one that allows lenders to retain a 15 percent share, an increase of 10 percent.

There are a total of three loan options -- new, priority and expanded.

The Fed said it decided on the changes after receiving feedback from thousands of people, businesses and non-profit organizations.

Treasury Secretary Steven Mnuchin approved the program as part of the Federal Reserve Act. The Treasury will provide $75 billion for the program out of funds from the $2.2 trillion Coronavirus Aid, Relief, and Economic Security, or CARES, Act that was enacted last month.

The Federal Reserve didn't say when the expansion will take effect.