PakNews: Fed says around 600 smaller banks tapped PPP facility in its first days

Saturday, 16 May 2020

Fed says around 600 smaller banks tapped PPP facility in its first days

Around 600 banks, most of them small community institutions, tapped the Federal Reserve's Paycheck Protection Program facility for about $30 billion of loans as of May 6, the U.S. central bank reported on Saturday in its first detailed disclosure under the new program. The lenders used 3,676 PPP loans they had issued to small businesses as collateral for money from the central bank's PPP program, clearing room on their own balance sheet for further lending. The Fed said it had collected $2.5 million in interest and fees for the transactions so far.