In Mr. Mnuchin's November announcement, he said the program was no longer needed and the funds would be better spent on business grants. In the recently enacted $900 billion Covid aid bill, Congress rescinded $429 billion it had provided for the Fed programs.
The bill provided $325 billion in additional small-business aid, plus $15 billion for movie theaters and live-entertainment venues. To process a last-minute crush of Main Street loans approved in December, the Fed and Treasury extended the program's termination date to Jan. 8.
The program would have reached more borrowers if it had been extended into 2021, said John Steinmetz, chief executive of Vista Bank, a $1.3 billion community bank in Dallas that completed 59 loans worth $660 million as of mid-December, with 21 more awaiting approval. "We had to turn away several at the end that were good candidates," he said.
Sen. Pat Toomey (R., Pa.) won language in the relief bill that prevents the Fed and Treasury from restarting the Main Street program in 2021 without Congress's approval.
Mr. Toomey said the government had succeeded in restoring the flow of credit. "The goal wasn't to have the Fed lend as much money as possible, " he said.
Write to Nick Timiraos at nick.timiraos@wsj.com
(END) Dow Jones Newswires
01-04-21 1049ET
