Federal Reserve COVID-19 Response: Federal Reserve Takes Additional Actions to Provide Up to $2.3 Trillion in Loans to Support Economy in Response to COVID-19

Sullivan & Cromwell LLP - April 13, 2020

On April 9, 2020, the Board of Governors of the Federal Reserve System (the “Board”) announced the creation of additional facilities and expansions to existing facilities that will provide up to $2.3 trillion in loans to “support households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.”  The new facilities are the Main Street Lending Program, the Paycheck Protection Program Lending Facility and the Municipal Lending Facility.  The expanded facilities are the Primary and Secondary Market Corporate Credit Facilities and the Term Asset-Backed Securities Loan Facility.  The Board had previously announced its establishment of the Main Street Lending Program.  This memorandum summarizes the operational details and terms of the facilities as they exist as of the date of publication of this memorandum.