More Resources Available For Small Businesses During COVID-19

We wanted to point out some additional financial resources that have been made available to companies, households, and local government entities based on an announcement late last week from the U.S. Federal Reserve:

• The Federal Reserve came out with additional policies last week that included offering up to $2.3 trillion in economic aid to businesses and state and local governments.

This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.

• The central bank extended $600 billion in loans through its Main Street Lending Program to small and medium-sized businesses pummeled by the coronavirus outbreak.

Additionally, the Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion.

• Up to $500 billion will be offered to state and local governments to avoid budget shortfalls and maintain spending on critical relief programs, the Fed said in a statement.

The Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities.

• The bank’s corporate credit facilities and Term Asset-Backed Securities Loan Facility are now collectively offering up to $850 billion to households, employers, and companies.

As you can imagine there are various details within these funding mechanisms that will be flushed out in the days and weeks ahead. We’re happy to work with our clients to provide some guidance on what may be available to you, especially if you own a business. Contact us to learn more.