Management consulting firms Guidehouse and PwC have been selected to help manage the Federal Reserve Bank of Boston’s Main Street Lending Program, which offers loans to small- and medium-sized enterprises impacted by the pandemic.
The two-firm partnership will provide asset purchase intake, due diligence, and credit administration services for the program, which provides credit flow to SMEs which were in sound financial standing prior to the Covid-19 pandemic.
The Main Street Lending Program will offer five-year loans with floating rates, with principal payments deferred for two years and interest payments deferred for one year. Lenders will work directly with businesses to determine eligibility and approval for loans, which will range in size from $250,000 to $300 million.
The Boston Fed is one of twelve regional banks in the Federal Reserve System (The Fed), which is tasked with overseeing national monetary policy, regulating banks, and maintaining financial stability. The Boston Fed covers Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and part of Connecticut.
The Fed will purchase 95% of loans to share in the risk and create additional balance sheet capacity for lenders.
“Small and medium-sized businesses are a vital part of the economy, and we look forward to our work in helping the country through this next step in stabilizing our economy and fostering a broad-based economic recovery,” said William Lewis, partner and Guidehouse public sector financial services leader.
Guidehouse was previously the public sector practice of contract partner PwC, before being sold off to Veritas Capital in 2018. The firm was greatly expanded with the acquisition of global consultancy Navigant in 2019. Guidehouse today has more than 7,000 professionals in 50+ global offices, delivering a full suite of management and technology consulting services to commercial and public sector clients.