Back to All NewsFed Extends Small Business Aid Lending Program by Three Months
Posted By American Med Spa Association, Wednesday, March 10, 2021
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Ahead of its expiration date on March 31, the Federal Reserve Board announced on Monday that it is extending the Paycheck Protection Program (PPP) Liquidity Facility through the end of June, allowing continued distribution of funds through the PPP to small businesses.
The PPP was implemented under the CARES Act in March, and although it was intended to aid small businesses with 500 employees or fewer, a number of relatively large companies—including fast-casual chain Shake Shack—received millions in PPP loans, later returned.
While the PPP itself is still set to expire on March 31, the Fed's liquidity facility will allow for banks to continue pledging loans made through the PPP as collateral to the central bank through June 30. This will help small businesses receive aid since banks won't have to worry about taking on the risks associated with giving out loans themselves.
Read more at Business Insider >>
The PPP was implemented under the CARES Act in March, and although it was intended to aid small businesses with 500 employees or fewer, a number of relatively large companies—including fast-casual chain Shake Shack—received millions in PPP loans, later returned.
While the PPP itself is still set to expire on March 31, the Fed's liquidity facility will allow for banks to continue pledging loans made through the PPP as collateral to the central bank through June 30. This will help small businesses receive aid since banks won't have to worry about taking on the risks associated with giving out loans themselves.
Read more at Business Insider >>
