Other Lending Programs

CARES Act, Payroll Protection, and Medicare Advance Payment Programs This document was last updated on July 7, 2020 to reflect changes made by the Department of Health and Human Services to its existing guidance. In response to widespread cash flow issues resulting from the COVID-19 public health emergency, Congress enacted two key pieces of legislation: the CARES Act and the Paycheck Protection Program and Health Care Enhancement Act (“PPPHCEA”). This guide details the compliance and oversight implications stemming from health care providers’ receipt of COVID-19-related grants and loans through the various CARES Act and PPPHCEA funding programs. The terms and…
Originally published on May 6, 2020. Last updated as of June 29, 2020. On June 29, 2020, the Federal Reserve Bank of New York (the “New York Fed”) published an updated set of Frequently Asked Questions (“FAQs”) concerning the Primary Market Corporate Credit Facility (the “PMCCF”) and the Secondary Market Corporate Credit Facility (the “SMCCF,” and together with the PMCCF, the “CCFs”) established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The New York Fed also published a revised term sheet for the PMCCF, which updates the previous PMCCF term sheet issued on April 9, 2020.…
Originally published on May 6, 2020. Last updated as of June 22, 2020. On June 15, 2020, the Federal Reserve Bank of New York (the “New York Fed”) published an updated set of Frequently Asked Questions (“FAQs”) concerning the Primary Market Corporate Credit Facility (the “PMCCF”) and the Secondary Market Corporate Credit Facility (the “SMCCF,” and together with the PMCCF, the “CCFs”) established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The New York Fed also published a revised term sheet for the SMCCF, which updates the previous SMCCF term sheet issued on April 9, 2020.…
On May 20, 2020, the Federal Reserve Bank of New York (the “New York Fed”) released the form of Master Loan and Security Agreement (“MLSA”) that will govern loans issued under its Term Asset-Backed Loan Facility (“TALF”) and published new Frequently Asked Questions (“FAQs”) to provide additional clarity on the TALF program. Additional FAQs were published on May 26, 2020 and June 8, 2020. Together, the MLSA, the FAQs, and the previously released TALF Term Sheet constitute the current terms and conditions for the TALF program. The first subscription date for TALF loans will be June 17, 2020, and the…
On May 12, 2020, the Federal Reserve published an updated Term Sheet and a set of Frequently Asked Questions (“FAQs”) for the Term Asset-Backed Securities Loan Facility (“TALF”). The TALF program, which was first announced on March 23, 2020 and updated on April 9, 2020, will provide a funding backstop for eligible asset-backed securities (“ABS”). The updated Term Sheet and the FAQ provide significant additional details about the terms of the program, including borrower and issuer eligibility, eligible collateral and certain operational details. The Federal Reserve has not yet announced start dates for the TALF program. This alert discusses key…
On May 4, 2020, the Federal Reserve published an updated set of Frequently Asked Questions (“FAQs”) concerning the Primary Market Corporate Credit Facility (the “PMCCF”) and Secondary Market Corporate Credit Facility (the “SMCCF”, and together with the PMCCF, the “CCFs”) established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).  The FAQs update previous FAQs issued on April 17, 2020 and clarify various terms of the program, including issuer eligibility, certification requirements and certain operational details. The SMCCF is expected to begin purchasing eligible ETFs in early May. The PMCCF is expected to launch and the SMCCF…
On April 9, 2020, the Federal Reserve announced additional programs under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide up to $2.3 trillion in loans and other investments to support the U.S. economy. These actions include: Supplying liquidity to financial institutions participating in the Small Business Administration’s Paycheck Protection Program (the “PPP”) (for more information on the PPP, see here); Establishing a new $600 billion Main Street Lending Program, aimed to ensure credit flows to small and mid-sized businesses that were in good standing before the COVID-19 pandemic (the “Main Street Lending Program”) (for…
On April 9, 2020, the Federal Reserve released an updated term sheet for the Term Asset-Backed Securities Loan Facility (“TALF”). The TALF program, which was first announced on March 23, 2020, will provide a funding backstop for eligible asset-backed securities (“ABS”) issued on or after March 23, 2020.[1] The updated term sheet expands the asset classes that qualify as eligible collateral to include certain commercial mortgage-backed securities (“CMBS”), as well as newly issued static collateralized loan obligations (“CLOs”). The updated TALF program was announced along with a number of other programs under Title IV of the CARES Act, which…
On March 27, 2020, Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which provides approximately $2.2 trillion in relief programs to U.S. individuals, businesses, states and municipalities. Title IV of the CARES Act provides for up to $500 billion in loans and loan guarantees to, and other investments in, Federal Reserve programs and facilities, to be made available to U.S. businesses that have not otherwise received adequate economic relief in the form of loans and loan guarantees under the CARES Act. The programs available under Title IV will be entirely…