Fed extends four emergency lending facilities through March 31

Four lending facilities created to support short-term funding markets amid the COVID-19 pandemic have been extended through March 31, 2021, the Federal Reserve announced Monday.

The facilities – the Commercial Paper Funding Facility (CPFF), the Money Market Mutual Fund Liquidity Facility (MMLF), the Primary Dealer Credit Facility (PDCF), and the Paycheck Protection Program Liquidity Facility (PPPLF) – were scheduled to expire on or around Dec. 31. Monday’s action means they will remain available at least through the earliest months of the incoming Biden administration.

“By backstopping critical short-term funding markets, these facilities are supporting market functioning and enhancing the flow of credit to the economy,” the Fed said in its release Monday. “The extension, which has also been approved by the Treasury Department, will facilitate planning by potential facility participants and provide certainty that the facilities will continue to be available through the first quarter of 2021 to help the economy recover from the COVID-19 pandemic.”

Commercial Paper Funding Facility Term Sheet

Money Market Mutual Fund Liquidity Facility Term Sheet

Primary Dealer Credit Facility Term Sheet

Paycheck Protection Program Liquidity Facility Term Sheet

Federal Reserve Board announces extension through March 31, 2021, for several of its lending facilities that were generally scheduled to expire on or around December 31

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