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Fed to Provide Financing for Small-Business Stimulus Loans

  • New facility would speed a program already funded by Congress
  • Fed to provide term funding with PPP loans as collateral
Why the long face?
Why the long face?Photographer: Bloomberg/Bloomberg
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The Federal Reserve said it will create a program to help speed the flow of funds to small companies through the government’s coronavirus stimulus, marking its latest step to shield the U.S. economy from the pandemic.

The facility will provide term financing to banks against loans issued under the Small Business Administration’s Paycheck Protection Program, the Fed said in a brief statement Monday.