Updated: New Letter of Agreement (LOA) required to receive new advances from the Paycheck Protection Program Liquidity Facility (PPPLF)
January 14, 2021
The PPPLF will continue to be available to eligible participants that pledge any Small Business Association- (SBA-) guaranteed Paycheck Protection Program (PPP) Loans that they have originated or purchased, which may include second draw loans or loans that are increased pursuant to the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act). All PPP loans pledged to the PPPLF must meet all applicable SBA and PPPLF requirements.
Any institution that plans to request a new advance under the PPPLF must execute an updated LOA as amended on January 14, 2021. PPPLF participants that are depository institutions must execute the Letter of Agreement for Depository Institutions (Off-site) and PPPLF participants that are non-depository institutions must execute the Letter of Agreement for Non-Depository Institutions (Off-site).
Any eligible participant that has not previously been approved to participate in the PPPLF must complete all necessary borrowing documentation. Institutions can find PPPLF requirements, reporting and repayment information, including the template for the reduction report and sample documents, on the PPPLF (Off-site) page of the Discount Window website. If you have any questions, please contact your lending Reserve Bank (Off-site).