The Fed keeps the party going

  • Fed lowers minimum loan amount to $250K from $500K
  • Maximum loan size rises to $300M from $200M
  • Extends duration of loans to 5 years from 4 years
  • Defers first payments and interest to 2 years rather than 1
  • Lowers bank participation rate to 5% on all loans vs most loans
  • Lenders encouraged to make main street facility loans immediately once registered for program

This is another signal that the Fed is never going to take away the punch bowl. The Fed is going to plow money into this market indefinitely.