Fed to release more details on participants in emergency programs
WASHINGTON — The Federal Reserve will release monthly details about two more of its emergency lending facilities that it deployed to support banks and other businesses dealing with the economic effects of the coronavirus pandemic.
The central bank will disclose information on a monthly basis about its Term Asset-Backed Securities Loan Facility and its Paycheck Protection Program Liquidity Facility, including the participants of both facilities, the amounts borrowed, the interest rate charged, value of pledged collateral, and the costs and fees associated with using each facility.
“The Federal Reserve remains committed to providing the public and Congress with detailed information about our efforts to support households and businesses during this unprecedented time,” Fed Chair Jerome Powell said in a statement Tuesday.
The Paycheck Protection Program Liquidity Facility provides funding to banks offering loans to struggling small businesses under the Small Business Administration program.
TALF, which has not yet launched, will support the issuance of asset-backed securities backed by student loans, auto loans, credit card loans and SBA-guaranteed loans, which will offer some relief to those borrowers. The Fed also clarified Tuesday that collateralized loan obligations will have to be arranged by a U.S. business in order to be eligible.
The Fed said last month that it would release similar details about lending facilities funded under the Coronavirus Aid, Relief and Economic Security Act, which Congress passed in March.