Yale School of Management

Posts by CARES Act

How Available Is the ESF for New Fed Facilities?

January 12, 2021
When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020, it allocated $500 billion to the Exchange Stabilization Fund (ESF), $454 billion of which was for the Treasury Secretary to support Federal Reserve lending facilities. The Secretary committed $195 billion of these funds to provide credit support to some of the programs the Fed set up under its Section 13(3) emergency lending authority. The Consolidated Appropriations Act, 2021 signed into law on December 27 definitively closed these facilities and rescinded funds “not needed to meet the commitments, as of January 9, 2021, of the programs and facilities established.” Continue reading “How Available Is the ESF for New Fed Facilities?”

The Uncertain Future of the Fed’s CARES Act Facilities

December 8, 2020
YPFS
After a rare public disagreement with the Treasury, the Federal Reserve says it will return the bulk of the funds that the Treasury provided to buttress the Fed against any losses on four emergency lending programs. The Treasury, in turn, has stated its intent to transfer all unused funds that Congress had allocated to it for use in the Fed facilities to its General Fund by year-end. Continue reading “The Uncertain Future of the Fed’s CARES Act Facilities”

Paycheck Protection Program spread loans widely, if not evenly

August 7, 2020
Congress charged the Paycheck Protection Program (PPP), enacted under the Coronavirus Aid, Relief, and Security (CARES) Act on March 27, with lending to small businesses stricken by the effects of COVID-19, and authorized private lenders to facilitate an unprecedented flow of Small Business Administration (SBA)-guaranteed loans. On this first objective, the program delivered, approving nearly 4.9 million loans with a total volume just north of $521 billion. But its performance, its efficacy, and its efficiency remain unsettled questions. Continue reading “Paycheck Protection Program spread loans widely, if not evenly”

The Federal Reserve expands eligible counterparties and agents in three emergency facilities

July 24, 2020
On July 23, the Federal Reserve expanded eligible counterparties and agents in three emergency lending facilities: the Term Asset-Backed Securities Loan Facility (TALF), the Commercial Paper Funding Facility (CPFF), and the Secondary Market Corporate Credit Facility (SMCCF). This move is aimed at increasing the Fed’s operational capacity and reach into the targeted markets. Continue reading “The Federal Reserve expands eligible counterparties and agents in three emergency facilities”