Fed expands access to PPP Liquidity Facility

The Federal Reserve Board has announced it has expanded access to its Paycheck Protection Program Liquidity Facility (PPPLF) to additional lenders, and expanded the collateral that can be pledged. The changes will facilitate lending to small businesses via the Small Business Administration's (SBA) Paycheck Protection Program (PPP). Now, all PPP lenders approved by the SBA, including non-depository institution lenders, are eligible to participate in the PPPLF.

SBA-qualified PPP lenders include banks, credit unions, Community Development Financial Institutions, members of the Farm Credit System, small business lending companies licensed by the SBA, and some financial technology firms. When the PPPLF was first announced, the Federal Reserve said the facility would immediately lend to depository institutions and that non-depository institutions would be added as soon as possible. Additional information is provided in the PPPLF Term Sheet.