In a silly move this morning, the Federal Reserve lowered the minimum amount that small businesses can apply for a Main Street Loan to $100,000 from $250,000.   While this might be nice political optics, as there are no other relief programs at the moment, it's not going to move the needle.

First of all, the Federal Reserve did not extend the program's deadline, which is set to expire on 12/31.  These loans are complicated and take a long time to get through underwriting and then approved by the Federal Reserve.  There is barely enough time left if a business was to start an application today.

Secondly, the program is not designed to help small businesses.   The average loan amount lent to date through the program is approximately $9.25 MM. Changing the bottom threshold to $100,000 does not change the complexities of the program.

Congress must move on a new relief bill. This one is not going to do the trick.