Treasury Secretary and FRB Chair Describe Latest Efforts on Pandemic Recovery

Treasury Secretary Janet L. Yellen described tweaking the Paycheck Protection Program to increase the percentage of loans going to small businesses, and Federal Reserve Board ("FRB") Chair Jerome H. Powell described the closing of pandemic-related emergency lending facilities established under the Coronavirus Aid, Relief and Economic Security Act ("CARES Act").

In testimony before the House Financial Services Committee, Secretary Yellen highlighted the Treasury's work with the Small Business Administration in "tweaking" the design and implementation of the Paycheck Protection Program ("PPP") (see previous coverage here) to increase the percentage of PPP loans going to (i) businesses with fewer than 20 employees and (ii) businesses in low- and moderate-income communities.

Mr. Powell testified that, with the closing of emergency lending facilities, the FRB has returned "the large majority" of the Treasury's CARES Act equity. Mr. Powell stated that the remaining emergency lending facilities will "follow suit imminently," excluding the PPP Lending Facility, which was recently extended until June 30, 2021 (see previous coverage here).