The Federal Reserve Board announced on March 8 it will extend its Paycheck Protection Program Liquidity Facility (PPPLF) by three months to June 30, 2021. The extension will provide continued support for the flow of credit to small businesses through the Small Business Administration’s Paycheck Protection Program (PPP).
Three other emergency lending programs, however, will expire at the end of March amid low usage. This highlights how significant struggles caused by the pandemic have eased in financial markets.
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The PPPLF extends term credit to financial institutions making PPP loans, thus accepting the PPP loans as collateral. The liquidity provided by the PPPLF also helps eligible financia…