The Fed announced it would provide up to an additional $2.3 trillion in loans to support the economy and offset the negative impact of the COVID-19 pandemic. Up to $600 billion of this funding will be set aside for loans to help small and mid-sized businesses struggling as a result of the virus.
“Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus,” said Federal Reserve Board Chair Jerome H. Powell. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”
The Fed will also be opening a “Main Street Lending Facility,” providing four-year loans to businesses that are struggling if they have less than 10,000 employees and earn less than $2.5 billion in revenue yearly. In addition, the Fed announced a facility to purchase forgivable loans issued to businesses under the Paycheck Protection Program—a part of the CARES Act passed last month.
As the coronavirus and its impact on the industry unfold, RISMedia is providing resources and updates. Get the latest.