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The Federal Reserve Board ("FRB") expanded the Paycheck Protection Program ("PPP") Liquidity Facility ("PPPLF") to program lenders approved by the Small Business Administration ("SBA"). SBA program-approved lenders include non-depository institution lenders, credit unions, banks, Community Development Financial Institutions, members of the Farm Credit System, certain small business lending companies and some FinTech firms.
In addition to the expansion of eligible lenders, "eligible borrowers will be able to pledge whole PPP loans that they have purchased as collateral to the PPPLF. An institution that pledges a purchased PPP loan will need to provide the Reserve Bank with documentation from the SBA demonstrating that the pledging institution is the beneficiary of the SBA guarantee for the loan."
Originally published May 01, 2020.
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