On Monday, the Federal Reserve Board announced significant expansions of the Municipal Liquidity Facility (“MLF”). The MLF was unveiled on April 9, 2020 as part of the federal initiative to provide trillions in loans to shore up those affected by the coronavirus pandemic. In a nutshell, the MLF is designed to provide a liquidity backstop
Municipal Liquidity Facility
Municipal Liquidity Facility Announced
By Angela Adolph on
Posted in COVID-19, State and Local Taxation
This morning, the Federal Reserve announced the creation of a new liquidity facility to ensure that municipal governments can maintain cash flows and continue to operate. Under the new Municipal Liquidity Facility, the Federal Reserve will lend up to $500 billion to a special purpose vehicle that will purchase eligible notes directly from eligible issuers. …