April 10, 2020 |
On April 9, 2020, in further response to the economic effects of the Coronavirus Disease 2019 (COVID-19) pandemic, the Board of Governors of the Federal Reserve System took actions to pump an additional $2.3 trillion in liquidity into the U.S. credit and capital markets. According to the Federal Reserve, this new $2.3 trillion – which complements the $849 billion in funding authorized by the U.S. Congress under Titles I and IV of the CARES Act — “will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.”
The Federal Reserve’s actions are intended “to support employers of all sizes and communities across the country.” This GT Alert provides a useful summary of how these actions will be implemented, covering the Main Street Lending Program, Expanded Primary and Secondary Market Corporate Credit Facility; Expanded TALF; Municipal Liquidity Facility; and the Paycheck Protection Program Facility.
Compliments of Greenberg Traurig, LLP – a member of the EACCNY.