The Federal Reserve's response has been guided by our mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote the stability of the financial system.
When financial markets came under intense pressure last year, we took broad and forceful actions, deploying both our conventional and emergency lending tools to more directly support the flow of credit. Our actions, taken together, helped unlock more than $2 trillion in funding to support businesses large and small, nonprofits, and state and local governments between April and December. This support, in turn, has helped keep organizations from shuttering and put employers in both a better position to keep workers on and to hire them back as the recovery continues.
Our programs served as a backstop to key credit markets and helped restore the flow of credit from private lenders through normal channels. We deployed these lending powers to an unprecedented extent last year. Our emergency lending powers require the approval of the Treasury and are available only in very unusual circumstances.
Many of these programs were supported by funding from the CARES Act. Those facilities provided essential support through a very difficult year. They are now closed, and the Federal Reserve has returned the large majority of the Treasury's CARES Act equity, as required by law. Our other emergency lending facilities are following suit imminently, although we recently extended the PPPLF (Paycheck Protection Program Lending Facility) for another quarter to continue to support the PPP (Paycheck Protection Program).
Everything the Fed does is in service to our public mission. We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible on behalf of communities, families, and businesses across the country.
Thank you. I look forward to your questions.
Summary of Section 13(3) Facilities Using CARES Act Funding
(Billions of dollars)
| Facility | Announced | Closed | Maximum capacity1 | Current amount of assets2 | Peak amount of assets2 | Treasury equity remaining3 |
|---|---|---|---|---|---|---|
| Corporate Credit Facilities | Mar. 23, 2020 | Dec. 31, 2020 | 750 | 13.8 | 14.1 | 13.9 |
| Main Street Lending Program | Apr. 9, 2020 | Jan. 8, 2021 | 600 | 14.1 | 16.6 | 16.5 |
| Municipal Liquidity Facility | Apr. 9, 2020 | Dec. 31, 2020 | 500 | 6.2 | 6.4 | 6.3 |
| TALF | Mar. 23, 2020 | Dec. 31, 2020 | 100 | 2.2 | 4.1 | 3.5 |
Note: The data are current as of March 17, 2021.
1. The maximum authorized amount of facility asset purchases. Return to table
2. Current and peak outstanding amounts of facility asset purchases:
- For the Corporate Credit Facilities, includes exchange-traded funds at fair value and corporate bonds at book value.
- For the Main Street Lending Program, includes loan participations, net of an allowance for loan losses updated as of December 31, 2020, at face value.
- For the Municipal Liquidity Facility, includes municipal notes at book value.
- For the TALF (Term Asset-Backed Securities Loan Facility), includes loans to holders of eligible asset-backed securities at book value. Return to table
3. The amount of the Treasury contribution to the credit facilities. Return to table
Source: Staff calculations.
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