From The Washington Post….
The cash infusion to Wellshire Financial Services — part of a multi-state title loan empire run by Atlanta businessman Rod Aycox — came from the Federal Reserve’s $600 billion Main Street Lending program for small- and medium-size businesses. It’s the same program that is among the Federal Reserve’s emergency lending facilities that will be allowed to expire at year’s end after Treasury Secretary Steven Mnuchin announced last week the unspent funds will be redirected to more distressed parts of the U.S. economy. The decision does not affect loans that already have been made, such as the one to Wellshire.
Wellshire’s government-backed, five-year loan came with a 3.15 percent interest rate, Fed records show.
Loans to consumers at Wellshire’s auto-title loan stores can carry a 350 percent annual rate, thanks to high fees and interest supercharging the cost of borrowing, according to corporate disclosure documents.