- Fed extends its Paycheck Protection Program Liquidity Facility to July 30
- Facility assists financial institutions in processing PPP loans
- Deadline for new PPP loans was May 31, but the program’s official expiration is June 30
Summary by Dirk Langeveld
As the Paycheck Protection Program moves from accepting new applications to processing forgiveness requests on existing loans, the Federal Reserve has extended a facility designed to assist lenders with this task.
The Paycheck Protection Program Liquidity Facility has been extended from June 30 to July 30. The facility assists financial institutions in making PPP loans by extending term credits to the lenders and accepting the loans as collateral. The Fed says the extension gives financial institutions additional processing time to pledge any PPP loans to the facility through the June 30 expiration of the program.
- PPP, administered by the U.S. Small Business Administration, has been one of the more popular programs set up in response to the COVID-19 pandemic and provides forgivable loans to small businesses
- The Fed previously extended the Paycheck Protection Program Liquidity Facility from March 31, the original deadline for PPP applications in its final funding round, to June 30
- PPP closed to new applications on May 31, but officially expires on June 30 to allow additional processing time
- The program has issued 11.82 million loans totaling $799.83 billion, including 6.68 million loans totaling $277.7 billion in the 2021 funding round
