This morning, the Federal Reserve announced another step the United States Government is taking to bolster the economy through this global pandemic. The announcement is centered around how to provide credit to small to medium-sized businesses (SMBs).
The four priorities outlined:
1. Provide banks with the liquidity needed to fund the SBA Paycheck Protection Program loans.
2. Create the Main Street Lending Program to offer four-year notes to companies with fewer than 10,000 employees and under $2.5B in revenues.
3. Increase the ability to get asset-backed debt through Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) and Term Asset-Backed Securities Loan Facility (TALF).
4. Create a Municipal Liquidity Fund to help state and local governments manage their cash flow better.
Read the whole press release here.