The Federal Reserve will extend for a final time its Paycheck Protection Program Liquidity Facility until July 30, the agency announced today.
The Fed said that the extension is being made as an operational accommodation to allow additional processing time for banks, community development financial institutions, and other financial institutions to pledge to the facility any PPP loans approved by the Small Business Administration through the June 30 expiration of the PPP program.
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.
