WASHINGTON—Credit unions have availed themselves of the Federal Reserve's Paycheck Protection Program Liquidity Facility (PPPLF).
The Federal Reserve created the PPPLF to bolster the effectiveness of the Small Business Administration's Paycheck Protection Program (PPP). The PPPLF extends credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value.
Small Business Administration-qualified PPP lenders—both depository institutions and non-depository institutions—are eligible to borrow under the PPPLF.
On May 15, the Federal Reserve disclosed the name of the participants using the PPPLF, the amount borrowed, interest rate charged, and the value of collateral.
The Participants
According to Keith Leggett, the former senior vice president and senior economist at the ABA, credit unions using the PPPLF between April 16 and May 6 included:
- Potlatch No 1 Financial Credit Union, Lewiston, Idaho
- Greater Nevada Credit Union. Carson City, Nev.
- Carter Federal Credit Union, Springhill, La.
- Aneca Federal Credit Union, Shreveport, La.
- Elements Financial Credit Union, Indianapolis
- United Federal Credit Union, Saint Joseph, Mich.
- Notre Dame FCU, South Bend, Ind.
- Capital Area Realtors FCU, Rockville, Md.
- Noteworthy Federal Credit Union, Cleveland
- Self-Help Federal Credit Union, Durham, N.C.
- Stepping Stones Community Federal Credit Union, Wilmington, Del.
- Empire Financial FCU, Bayside, N.Y.
The outstanding collateral from these credit unions was $119 million, Leggett said.