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Federal Reserve announces it is working to expand access to its Paycheck Protection Program Liquidity Facility (PPPLF) for additional SBA-qualified lenders as soon as possible (2020-04-23)

Summary

A press release of the Board of Governors of the Federal Reserve System dated April 23, 2020. It announces that the Federal Reserve is working to expand access to its Paycheck Protection Program Liquidity Facility (PPPLF) for additional SBA-qualified lenders as soon as possible, such as some Community Development Financial Institutions. The release states that only depository institutions are currently eligible and that over 1000 have been approved to access the program. It explains that the PPPLF extends credit to financial institutions that make PPP loans, using the loans as collateral, and that details on eligibility will be announced shortly.

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Board of Governors of the Federal Reserve System

Press Release

April 23, 2020

Federal Reserve announces it is working to expand access to its Paycheck Protection Program Liquidity Facility (PPPLF) for additional SBA-qualified lenders as soon as possible

For release at 5:45 p.m. EDT

To facilitate lending to small businesses via the Small Business Administration's Paycheck Protection Program (PPP), the Federal Reserve on Thursday announced that it is working to expand access to its Paycheck Protection Program Liquidity Facility (PPPLF) for additional SBA-qualified lenders as soon as possible.

SBA-qualified PPP lenders include depository institutions, such as banks and credit unions, as well as non-depository institution lenders, such as some Community Development Financial Institutions. Currently, only depository institutions are eligible to participate in the PPPLF, and over 1000 have already been approved to access the program.

The SBA's PPP guarantees loans from qualified lenders to small businesses so that those businesses can keep workers employed. The PPPLF supports the PPP by extending credit to financial institutions that make PPP loans, using the loans as collateral. The additional liquidity from the PPPLF increases the capacity of financial institutions to make additional PPP loans.

Additional details on eligibility will be announced shortly.

For media inquiries, call 202-452-2955

Last Update: April 23, 2020

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