The Federal Reserve on Tuesday extended several lending facilities to the end of the year that were originally scheduled to expire around Sept. 30.
Included in this extension is the Paycheck Protection Program Liquidity Facility, which ultimately provides the money for loans to small businesses negatively affected by the coronavirus.
The current deadline to apply for a PPP loan is Aug. 8, but the program now has the liquidity to provide funding to the banks that deliver loans to small businesses until the end of the year.
The three-month extension also applies to the Primary Dealer Credit Facility, the Money Market Mutual Fund Liquidity Facility, the Primary Market Corporate Credit Facility, the Secondary Market Corporate Credit Facility, the Term Asset-Backed Securities Loan Facility, and the Main Street Lending Program.
The Treasury Department must approve of these extensions, which Secretary Steven Mnuchin did earlier today.
“I have sent a letter to Federal Reserve Board Chairman Jerome Powell approving a three-month extension” of the lending facilities, Mnuchin said.
