Fed Expands PPP Liquidity Facility’s Eligible Participants, Collateral

The Federal Reserve today expanded access to its Paycheck Protection Program Liquidity Facility to nonbank lenders and expanded the range of collateral that can be pledged to the PPPLF. Eligible borrowers will now be able to pledge whole PPP loans that they have purchased.

All lenders approved by the Small Business Administration to make PPP loans are now eligible to pledge collateral to the PPPLF. Eligible non-depository institutions include nonbank community development financial institutions, Farm Credit System lenders, small business lending companies licensed by SBA and some fintech firms, the Fed said.