The Quarterly CARES Act Report to Congress

The Quarterly CARES Act Report to Congress | Senate Committee on Banking, Housing, and Urban Affairs

Federal Reserve Chairman Jay Powell and Treasury Secretary Steven Mnuchin testified on May 19, 2020, before the Senate Banking Committee on implementation of the CARES Act and the credit facilities authorized by that legislation.

Secretary Mnuchin noted that Treasury has committed $195 billion from its Exchange Stabilization Fund for Federal Reserve Lending Programs, and has $259 billion remaining to “create or expand programs as needed.” Chairman Powell outlined steps that the Fed has taken, including purchases of Treasury and asset backed securities, discount window and liquidity measures, facilities to directly support flow of credit to businesses and households with Treasury backing, and temporary regulatory relief measures to free up bank balance sheets. Powell said the Main Street Lending Program (MSLP) should be operational by the end of May.

Senator Pat Toomey emphasized that nonbank lenders, including BDCs, be deemed eligible lenders to participate in the MSLP.

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