Fed Reveals Plan to Spark Business Lending

According to the Credit & Collections World Wide web site, the Fed and Treasury officials announced the creation of a “new Term Asset Backed Securities Loan Facility which will lend up to $200 billion to holders of securities that back credit card, auto, small-business and student loans” this morning.  This is a strategic move is hoping to jump-start the issuance of new consumer loans and business loans backed by the U.S. Small Business Administration.

Officials from the U.S. Department of the Treasury and the Federal Reserve hope the move will “enable a broad range of institutions to step up their lending, enabling borrowers to have access to lower-cost-consumer-finance and small-business loans.”

Click here to read the entire post: Fed Unveils Plan to Spark Consumer, Business Lending.