Last week, the Federal Reserve Board announced it will extend the Paycheck Protection Program (PPP) Liquidity Facility to July 30, 2021.
This one-month extension will allow for additional processing time for the banks and other financial institutions to manage existing PPP loan application backlog, whose deadline was May 31,2021. It also extends term credit to financial institutions making PPP loans, accepting the PPP loans as collateral, according to the press release. PPP loans that are guaranteed by the Small Business Administration are eligible to serve as collateral for the Facility, according to the Reserve Board’s term sheet.
Read the Federal Reserve Board’s full press release.
Eligible borrowers are lenders that were eligible to originate PPP loans under the Facility. See the full fact sheet for more details.
If you have further questions about PPP, or need assistance accounting for them, please contact our COVID-19 advisory team.
