FRB Encourages Participation in CARES Act Lending Programs

The Federal Reserve Board ("FRB") encouraged financial institutions to participate in Small Business Administration ("SBA") and Treasury Department programs made available under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act").

In a Supervision and Regulation letter, the FRB provided website links to the following programs:

• The Economic Injury Disaster Loan Program, which provides, under Section 7(b) of the Small Business Act, funds to small businesses to compensate for lost revenue and other economic injuries due to COVID-19; and
• The Paycheck Protection Program, which offers loans to incentivize qualified small businesses to keep their employees throughout the COVID-19 pandemic, in addition to granting loan forgiveness pending certain conditions.