Fed to Launch ABA-Advocated Facility for Financing PPP Loans

Posted: Apr 08 2020

In order to facilitate PPP loans, the Federal Reserve will soon create a facility to provide term financing backed by PPP loans.

This move would provide PPP lenders with liquidity to ensure they can fund the up to $349 billion in PPP loans authorized by Congress in the CARES Act. It addresses one concern expressed by bankers as the PPP launched last week and as it scales up this week.

To read more visit: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200406a.htm