The Central Bank intends to allocate $ 2.3 trillion of financial aid to the business
The US Federal Reserve has launched a large-scale program for $ 2.3 trillion to support local administration, as well as small and medium-sized businesses. The goal is to help the American economy deal with the coronavirus epidemic.
In a statement, Fed Chairman Jerome Powell said the central bank is trying to “help and ensure stability” during quarantine, while Americans are forced to stay home.
It is noted that “significant” financial support for the programs is provided by the US Treasury Department. Using $ 75 billion received from the Ministry of Finance, the Fed will intentionally acquire loans of up to $ 600 billion to support SMEs. Loans of up to four years will be received by companies with less than 10 thousand employees or income below $ 2.5 billion.
The Federal Reserve will offer loans of up to $ 500 billion to states and municipalities through the purchase of municipal bonds and expand the existing corporate lending program (“credit facility secured by securities”).
Earlier this week, the Fed announced that it would send $ 349 billion to banks providing loans under the Small Business Union (SBA) program, which aims to preserve jobs and salaries for small business workers.
Paypal magazine help
Earlier, we have written that the ministers and the Cabinet of the National Bank have developed two programs of quick credit support for small businesses. Prime Minister Dennis Shimgal said that the “Affordable Loan 5-7-9%” for its effectiveness in quarantine would be the fastest help to improve the program. The second program is built from scratch, now it is in the final stages.
Read: The fight against Coronavirus: what Ukraine is doing to support trade