CARES Act Financial Assistance to Business Enterprises, States and Municipalities

    View Author April 2020

    After much anticipation, the Board of Governors of the Federal Reserve (Federal Reserve) on April 9, 2020 announced additional actions “using its full range of authorities” to provide US$2.3 trillion of credit to a wide variety of business enterprises, states and municipalities. The Federal Reserve’s actions in support of existing and new programs, as described below, leverage up to US$500 billion of investment by Treasury and leave substantial “dry powder” for the Federal Reserve to modify or provide additional financial support if and as needed after these programs take root. The guidance provided to date is both incomplete and subject to revision, with the Federal Reserve seeking public comment to its guidance on or before April 16.

    In this alert, we provide an overview of each of the new programs and their respective term sheets, including as they relate to eligible assets and issuers, limits per issuer, and pricing, among other issues.