Fed Says Backstop for Small Business Loans Fully Operational

The Federal Reserve’s program to back emergency government loans to small businesses is “fully operational,” the U.S. central bank said on Thursday, a boost to banks as they await a possible expansion to the total amount of funds they will be allowed to disburse to help companies through the coronavirus crisis.
The Fed’s program is designed to make it easier for banks to offer loans under the $350 billion Paycheck Protection Program run by the Small Business Administration (SBA) by extending credit to financial institutions that make them, using the loans as collateral.
There are no fees for using the facility but the Fed said it will charge banks a 0.35% interest rate.Read more at Reuters >>