Federal Reserve extends lending program
- August 17, 2009
To boost the flow of credit to small businesses and consumers, the Federal Reserve is extending a government program that offers lower interest rates. However, it is not expanding the types of loans eligible for the program.
The Federal Reserve Board and U.S. Treasury Department announced an extension today of the Term Asset-Backed Securities Loan (TALF) Facility through March 31, 2010. The program was scheduled to end on Dec. 31.
Investors can use the funds to buy securities backed by auto and student loans, credit cards, business equipment and loans guaranteed by the Small Business Administration. TALF was also designed to aid the financing of commercial properties.