April 29, 2020
Updated Guidance on the Federal Reserve’s Municipal Liquidity Facility: A Short-Term Financing Option for State and Local Governments
CARES Act update based upon the Federal Reserve’s Municipal Liquidity Facility released on April 27, 2020.
The Coronavirus Aid, Relief, and Economic Security Act (the ‘‘CARES Act’’) authorizes the Treasury Secretary to make loans, loan guarantees, and other investments in support of eligible businesses, states, and municipalities to provide liquidity related to losses incurred as a result of COVID-19. The following provides updated information on the Federal Reserve’s Municipal Liquidity Facility (“MLF”) developed pursuant to this authority, based on FAQ guidance released on April 27, 2020.