The Federal Reserve announced its Paycheck Protection Program Liquidity Facility (PPPLF) is fully operational and available for institutions to use.

Through the facility, the Federal Reserve will extend non-recourse loans to institutions eligible to make Small Business Administration’s Paycheck Protection Program (PPP) loans. PPP loans guaranteed by the SBA that are originated by eligible institutions may be pledged as collateral to the Federal Reserve Banks.

More information, such as the term sheet and letter of agreement, can be found on the Federal Reserve’s website. If you have questions about how this impacts your institution, contact Doeren Mayhew’s Financial Institutions Group.