A Guide to the Financial Resources Your Business Needs Right Now

PRESENTED BY
 GUEST SPEAKERS

DALEEP SINGH
KEVIN LAW
Executive Vice President,
President & CEO Head of Markets Group
The Long Island Association
Federal Reserve Bank of New York

Latest Federal and The Federal Reserve’s Response

State Updates to COVID-19
LATEST FEDERAL
& STATE UPDATES
BY

KEVIN LAW
President & CEO of the Long Island Association
FEDERAL GOVERNMENT UPDATE

NEW CORONAVIRUS RELIEF BILL

The Paycheck Protection Program funding

had been exhausted.
FEDERAL GOVERNMENT UPDATE

NEW CORONAVIRUS RELIEF BILL

President Trump and Congress have reached a deal
on an approximately $484 billion package to
replenish the PPP and offer more aid to small
businesses.
FEDERAL GOVERNMENT UPDATE

NEW CORONAVIRUS RELIEF BILL

WILL INCLUDE:
$321 Billion for the
Small Business Administration’s
Paycheck Protection Program
(which includes $60 billion set aside for community banks and smaller lenders)
FEDERAL GOVERNMENT UPDATE

NEW CORONAVIRUS RELIEF BILL

WILL INCLUDE:

$60 Billion for the

Economic Injury Disaster Loan
FEDERAL GOVERNMENT UPDATE

NEW CORONAVIRUS RELIEF BILL

WILL INCLUDE:

$75 Billion for Hospitals

$25 Billion for Testing
 NEW YORK STATE UPDATE

NEW YORK ON PAUSE

Remains in Effect until May 15th
 NEW YORK STATE UPDATE

ECONOMIC RECOVERY
On Sunday, Governor Andrew Cuomo joined with
governors from New Jersey, Connecticut, Pennsylvania,
Delaware, Rhode Island and Massachusetts to announce
their appointees to the multi-state council to restore the
economy and get people back to work.
 NEW YORK STATE UPDATE

ECONOMIC RECOVERY
At his briefing on Monday, Governor Cuomo
discussed creating a Reimagine NY Task Force
that will primarily focus on downstate New York
and be led by local leaders.
 NEW YORK STATE UPDATE

ECONOMIC RECOVERY
Governor Cuomo announced the state will take a
regional approach to reopening and will make
decisions on which counties and regions to open
and when to open them based on the facts and
data specific to that area.
 NEW YORK STATE UPDATE

ESSENTIAL BUSINESSES
The New York State Department of Labor
announced the launch of a new application for
New Yorkers to apply for traditional
Unemployment Insurance or the new COVID-19
Pandemic Unemployment Assistance.
 NEW YORK STATE UPDATE

ESSENTIAL BUSINESSES
This will streamline the process for
unemployment benefits and provide one form
to fill out to get benefits and not require calling
the Department of Labor.
 NEW YORK STATE UPDATE

ESSENTIAL BUSINESSES
The Empire State Development Essential
Business Guidance has been updated with
changes to golf courses and marinas.
 NEW YORK STATE UPDATE

ESSENTIAL BUSINESSES
Golf courses are still considered non-essential
but can now be played under strict COVID-19
and social distancing rules.
 NEW YORK STATE UPDATE

ESSENTIAL BUSINESSES
Use of marinas, boatyards, and recreational
marine manufacturers is permissible where
such facilities adhere to social distancing rules
and sanitization protocols.
 NEW YORK STATE UPDATE

ESSENTIAL BUSINESSES
Use of such sites for the purposes of
personal use or operation of boats or other
watercraft is permissible.
 NEW YORK STATE UPDATE

ESSENTIAL BUSINESSES
FOR MORE DETAILS, SEE
https://esd.ny.gov/guidance-executive-order-2026
THE FEDERAL RESERVE’S
RESPONSE TO COVID-19
WITH

DALEEP SINGH
Executive Vice President, Head of Markets Group
Federal Reserve Bank of New York
The views expressed here are those of the presenter and do not necessarily represent
those of the Federal Reserve Bank of New York or the Federal Reserve System.
 WHY DID THE FED NEED
TO RESPOND?
PANDEMIC Extreme
Uncertainty
Market
Volatility
OUTBREAK

Credit System-Wide
Crunch Deleveraging

Market
Dysfunction
 WHAT HAS THE FED DONE
IN RESPONSE?
FOMC RATE POLICY
Lowered target rate by 50 bps to 1.0% – 1.25% on March 3

Lowered target rate by 100 bps to 0.0% - 0.25% on March 15

Lowered primary credit rate by 150 bps to 0.25% on March 15

 WHAT HAS THE FED DONE
IN RESPONSE?
LIQUIDITY OPERATIONS
O/N and term repo funding (peak of $152bn and $370bn
on March 17 and March 23, respectively)
Outright purchase operations (since March 15): $1.3 trillion
of USTs and ~$460bn agency MBS
Discount window: $34bn
Swap lines: $410bn
Foreign and International Monetary Authorities (FIMA)
Repo Facility
 WHAT HAS THE FED DONE
IN RESPONSE?
CREDIT SUPPORT
Section 13(3) of the Federal Reserve Act
Primary Dealer Credit Facility
Commercial Paper Funding Facility
Primary Credit and Secondary Market Corporate Credit Facilities
Term Asset-Backed Securities Lending Facility
Money Market Liquidity Facility
Paycheck Protection Program Liquidity Facility
Municipal Liquidity Facility
Main Street Lending Facilities
 HOW WILL THESE FACILITIES
MAKE A DIFFERENCE?*
FACILITY
Primary Dealer
Credit Facility (PDCF)
Commercial Paper
Funding Facility (CPFF)
Primary Market Corporate
Credit Facility (PMCCF)
Secondary Market Corporate
Credit Facility (SMCCF)
Term Asset-Backed Securities
Loan Facility (TALF)
Paycheck Protection Program
Liquidity Facility (PPPLF)
Municipal Liquidity
Facility (MLF)
*Facilities implemented by the New York Fed (in some cases, alongside other Federal Reserve Banks)
PURPOSE
Allow primary dealers to support smooth market functioning and facilitate the
availability of credit by providing term funding for a broad range of collateral
Support the short-term funding needs of eligible issuers by purchasing
commercial paper through primary dealers
Assist large employers’ access to credit by providing a funding backstop
for eligible issuers
Support the flow of credit to large employers by providing liquidity to the
market for outstanding corporate bonds and ETFs
Support the flow of credit to consumers and businesses by enabling the
issuance of asset-backed securities backed by student loans, auto loans,
credit card debt, etc.
Bolster the effectiveness of the Small Business Administration's Paycheck
Protection Program (PPP) by supplying term liquidity to participating lenders
Help state and local governments to better manage cash flow pressures
and address funding needs by providing short-term lending
 GUIDING PRINCIPLES

TRANSPARENCY
Disclosure of vendor selection criteria and
competitive bidding (post exigency)
Posting of fees paid and key terms
Clear guidelines on eligibility of borrowers and collateral
Reporting on facility usage (participants, size, price)
 GUIDING PRINCIPLES

GOVERNANCE
Proactive management on conflicts of interest
Refined personal investment guidelines
Clear rules on gathering of market intelligence
and information handling
Balancing loss protection with financial stability goals
GUIDING PRINCIPLES

ACCOUNTABILITY
Responsible for process and outcomes

Full engagement with oversight bodies

Nothing more important than trust

 WHERE CAN I LEARN MORE?

RESOURCES
FEDERAL RESERVE BOARD
Webpage on COVID-19 Related Actions
https://www.federalreserve.gov/covid-19.htm

Feedback Form
https://www.federalreserve.gov/apps/contactus/feedback.aspx
WHERE CAN I LEARN MORE?

RESOURCES
NEW YORK FED
New York Fed Actions Related to COVID-19
https://www.newyorkfed.org/markets/new-york-
fed-actions-related-to-covid-19
Community Resources on the Coronavirus
https://www.newyorkfed.org/outreach-and-
education/coronavirus-resource-center