This story appeared in Bank Digest.
The Federal Reserve Board is expanding the scope and duration of the Municipal Liquidity Facility (MLF), which was announced on April 9, 2020, and will offer up to $500 billion in lending to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic.
Among other changes, the Fed announced new population thresholds it said will allow substantially more entities to borrow directly from the MLF than the initial plan announced on April 9. The termination date for the facility has been extended to Dec. 31, 2020, in order to provide eligible issuers more time and flexibility.