The Federal Reserve has announced that the Paycheck Protection Program Liquidity Facility (PPPLF), a facility that supports the Paycheck Protection Program, will be extended until July 30, 2021.
PPP extension July 2021
The Paycheck Protection Program Liquidity Facility or PPPLF will be extended to July 30, 2021. The Federal Reserve Board announced on Friday.
The FRB said, “The extension is being made as an operational accommodation to allow additional processing time for banks, community development financial institutions and other financial institutions to pledge to the facility any Paycheck Protection Program, or PPP, loans approved by the Small Business Administration through the June 30 expiration of the PPP program.”
“The PPPLF extends term credit to financial institutions making PPP loans, accepting the PPP loans as collateral.”
FRB added that “The liquidity provided by the PPPLF bolsters the effectiveness of the PPP by helping eligible financial institutions fund PPP loans.”
The PPPLF was created in April 2020 under the Board’s 13(3) power, and the Secretary of the Treasury granted the extension from June 30 to July 30, 2021.