What GAO Found In response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System authorized 13 emergency lending programs—with lending facilities to implement the programs—to ensure the flow of credit across the economy. To improve oversight of these programs, the Federal Reserve evaluated program internal processes and controls and identified 20 opportunities to enhance internal controls. GAO found that Federal Reserve Banks, which manage the facilities, have implemented processes to address all 20 opportunities. In addition, the Federal Reserve has completed its review of all 20 opportunities. GAO also found that the Federal Reserve’s plans for ongoing monitoring of the facilities are generally aligned with federal internal control standards. The five facilities under the Main Street Lending Program targeted small and midsize businesses and nonprofits. Of the 1,830 loans made through this program, 70 percent (1,277 loans) were fully repaid as of January 5, 2026, while 30 percent had experienced or were at risk of loss. Nearly 14 percent (251 loans) remained outstanding even though they should have closed by January 5, 2026. The other 16 percent resulted in losses to the program—$1.3 billion in charged-off loan amounts and $1.4 billion in authorized loan amounts sold…
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Federal Reserve Lending Programs: Main Street Program Continues to Hold Outstanding Loans Beyond Initial Maturity Dates
Source: US GAO Reports — US Government, Public Domain