Federal Reserve Adds $2.3 Trillion In Loans To Support The Struggling Economy
The Federal Reserve has taken additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist struggling households and employers and bolster the ability of State and local governments to deliver critical services during the coronavirus pandemic. Read the Federal Reserve press release HERE.
NADA Issues Summary of Federal Reserve & Treasury Department’s New Main Street Lending Program
On the heels of the Federal Reserve and U.S. Treasury Departmenting launching a new Main Street New Loan Facility to provide additional liquidity for businesses, NADA has issued a summary of the Program.
Eligibility for the Main Street Loan will be broader than under the Paycheck Protection Program. The purpose of this program is to facilitate loans to fund payroll expenses for businesses that were in good financial standing before the COVID crisis.
These loans will not have the extraordinarily favorable terms (such as forgiveness) found in the Paycheck Protection Program, yet the Main Street Loan will provide another source of liquidity to keep people on the payroll.
Read NADA’s summary of the new program HERE.