Client Alert
On March 23, 2020, the Board of Governors of the Federal Reserve System (Federal Reserve) announced the establishment of the Term Asset-Backed Securities Loan Facility (TALF 2020) to support the flow of credit to consumers and businesses. Although it did not provide many details about TALF 2020, it noted that TALF 2020 is primarily based on the terms and conditions of the Term Asset-Backed Securities Loan Facility used during the 2007-09 financial crisis (TALF 2009). In connection with the announcement of TALF 2020, the Federal Reserve provided a brief term sheet for TALF 2020 and promised to provide more detailed terms and conditions at a later date. On April 9, 2020, the Federal Reserve released a revised term sheet for TALF 2020
1 that, among other things, broadens the range of assets that qualify as eligible collateral under the program. In the updated term sheet, the Federal Reserve continued its promise to provide more detailed terms and conditions at a later date. In the release announcing the updates, the Federal Reserve also reiterated that it “remains committed to using its full range of tools to support the follow of credit to households and businesses to counter the economic impact of the coronavirus pandemic and promote a swift recovery once the disruptions abate.” The following questions and answers describe the major features of TALF 2020 as it has been modified as of April 9, 2020.

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