Fed to Extend Paycheck Protection Program Liquidity Facility

The Federal Reserve will extend its Paycheck Protection Program Liquidity Facility until June 30, the agency announced today. Through the facility—which is one of many COVID-19 relief programs established by the Fed under its Section 13(3) authority—the Fed may extend non-recourse loans to institutions eligible to make PPP loans. PPP loans guaranteed by the SBA that are originated by eligible banks may be pledged as collateral to the Federal Reserve Banks. The PPPLF was originally set to expire on March 31.