Today, the U.S. Department of Treasury (Treasury) and the U.S. Federal Reserve (Federal Reserve) announced additional actions to provide up to $2.3 trillion in financing for the American economy through programs authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This includes the establishment of new programs and the expansion of existing facilities established under Section 13(3) of the Federal Reserve Act.
The new programs are the Main Street New Loan Facility (MSNLF), Main Street Expanded Loan Facility (MSELF), The Paycheck Protection Program Lending Facility and the Municipal Liquidity Facility (MLF). The expanded programs are the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) and the Term Asset-Backed Securities Loan Facility (TALF).
Through these programs, Treasury has earmarked $185 billion of the $454 billion authorized under Section 4003(b)(4) of the CARES Act. Treasury still has $269 billion to use for future programs, if necessary, under this section of the Act, assuming no further authorizations from Congress. The Federal Reserve will leverage the Treasury’s commitments to further expand the total funding available to eligible participants through these facilities.
The Federal Reserve is requesting comments on the programs. The deadline for comments is April 16, 2020.
This update provides a summary of the new and expanded programs and highlights key points.
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