Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Photo: Smith Collection/Gado/Getty Images).
While business owners have largely praised the federal government's fast response and the good intent of the CARES Act, it has left much to be desired.
The state of play: It is believed that one of the reasons for the Fed's expanded lending under the Main Street facility is the struggles of the Paycheck Protection Program.
What it means: With the Small Business Administration overwhelmed by demand and many small business owners unable to access funding, PPP has been plagued by bad news since even before it launched.
Where it stands: "PPP was the right idea but it was intended to be a short-term measure and really needs structural changes that can, in addition to a major infusion of resources, give travel businesses and their workers a real chance to survive," Tori Barnes, executive VP of public affairs and policy at the U.S. Travel Association, said during a media briefing Thursday.
- "There are many businesses with no customers, with no revenues that are left out altogether of PPP and the CARES Act."
Between the lines: By reducing the size of the loans it offers (which unlike PPP loans cannot be forgiven), the Fed's Main Street program allows medium-sized businesses direct access to its seemingly bottomless supply of cheap capital through financial institutions that take on, at most, 15% of the risk while the central bank shoulders the rest.
- "By lowering the minimum loan size you’re going to be able to reach a lot of companies that would’ve been in that PPP range," Amanda Fischer, policy director for the Washington Center for Equitable Growth, tells Axios.
- "$500,000 is still bigger than the average PPP loan recipient, but this isn’t Wall Street levels of money."
Of note: The Fed also is buying PPP loans to clear them from bank balance sheets and allow more lending.
Go deeper: How many big companies got PPP loans