WASHINGTON–The Federal Reserve Board announced it will extend its Paycheck Protection Program Liquidity Facility, or PPPLF, by three months to June 30, 2021. The extension will provide continued support for the flow of credit to small businesses through the Paycheck Protection Program, or PPP, according the Fed. The PPP is administered by the Small Business Administration.
The Fed said PPPLF extends term credit to financial institutions making PPP loans, accepting the PPP loans as collateral, adding the liquidity provided by the PPPLF helps eligible financial institutions fund additional PPP loans. The PPPLF was established under the Board's 13(3) authority and the extension from March 31 to June 30, 2021 was approved by the Secretary of the Treasury, the Fed said.
The Fed said the other currently active 13(3) facilities—the Commercial Paper Funding Facility, the Money Market Mutual Fund Liquidity Facility, and the Primary Dealer Credit Facility—have not had significant usage since last summer and will expire as scheduled on March 31.
The extension comes as CUNA had recently joined with other groups in requesting the extension, as CUToday.info reported here. CUNA had asked the PPP be extended through year-end.