Important Federal Reserve Programs Updates

On April 9, 2020, the Federal Reserve introduced both new and enhanced programs in an effort to support companies of all sizes. In the aggregate, the programs provide up to $2.3 trillion of loan availability. The announced actions include the following:

Enhancements to the Small Business Administration's Paycheck Protection Program (PPP) by supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses.

Establishment of a new $600 Billion Main Street Lending Program, available to companies with up to 10,000 employees or less than $2.5 billion in revenue. The details of this program are being finalized with the Fed receiving input from borrowers, lenders and other stakeholders through April 16, 2020.

Expansion of the size and scope of the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) as well as the Term Asset?Backed Securities Loan Facility (TALF), which will now include triple?A?rated tranches of commercial mortgage?backed securities.

Implementation of a Municipal Liquidity Facility that will offer up to $500 billion in lending to states and municipalities.

A preliminary summary of today's announcement can be found here. It will be refined as further details are developed and announced.

ICSC is engaged in providing continuous input to the Treasury, the Federal Reserve and other stakeholders on the development and refinement of these and additional programs. We are also actively advocating with the Administration and Congress around the parameters of future COVID?19 related legislation.

We will continue to communicate with you on a timely basis. We hope that your families, friends and colleagues are staying healthy and safe, and we greatly appreciate your support during this time.

Sincerely,

Tom McGee
President & CEO
ICSC