April 23, 2020 / 10:10 PM / a month ago

Fed says working to broaden access to 'PPP' facility beyond banks

FILE PHOTO: The Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid

WASHINGTON (Reuters) - The Federal Reserve said on Thursday it will “shortly” announce new rules to expand access to a small business lending program beyond banks, so that a broader set of institutions can participate.

The Small Business Administration’s Paycheck Protection Program loans are being made by an array of institutions, including many deposit-taking banks but also Community Development Financial Institutions, financial technology firms and others.

The Fed program currently allows only banks to use their PPP loans as collateral to borrow from the Fed.

Reporting by Howard Schneider; Editing by Chris Reese

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