The Consumer and Business Lending Initiative was designed to jumpstart the credit markets, including:
- Term Asset-Backed Securities Loan Facilities (TALF): This joint initiative with the Federal Reserve builds off, broadens and expands the resources available to support the consumer and business credit markets by providing the financing to private investors to help unfreeze and lower interest rates for auto, student loan, small business, credit card and other consumer and business credit. The U.S. Treasury originally committed $20 billion to provide credit protection for $200 billion of lending from the Federal Reserve. This commitment was later reduced to $4.3 billion after the program closed to new lending on June 30, 2010 with $43 billion in loans outstanding.
- Expanded Reach to Include Commercial Real Estate: The Consumer & Business Lending Initiative expanded the initial reach of the TALF in June 2009 also include commercial mortgage-backed securities (CMBS).
- Protecting Taxpayer Resources by Limiting Purchases to Newly Packaged AAA Loans: Because these are the highest quality portion of any security — the first ones to be paid — we will be able to best protect against taxpayer losses and efficiently leverage taxpayer money to support a large flow of credit to these sectors.
- SBA 7a Program: Treasury
is taking immediate action to ensure that credit – the lifeblood of
America’s small business and its economy – gets flowing again to
entrepreneurs and business owners. As another part of the Consumer and
Business Lending Initiative, the Treasury Department will begin making
direct purchases of securities backed by SBA loans to get the credit
market moving again, and it will stand ready to purchase new securities
to ensure that community banks and credit unions feel confident in
extending new loans to local businesses. These purchases, combined with
higher loan guarantees and reduced fees, will help provide lenders with
the confidence that they need to extend credit, knowing they both have a
backstop against their risk and a source of liquidity. These measures
will complement other steps the Administration is taking to help small
businesses recover and grow, including several tax cuts under the
Recovery Act.
- Community Development Capital Initiative (CDCI): This TARP program invested lower-cost capital in Community Development Financial Institutions (CDFIs) that lend to small businesses in the country's hardest-hit communities
The Facility was closed for new loan extensions against newly issued commercial mortgage-backed securities (CMBS) on June 30, 2010, and for new loan extensions against all other tyles of collateral on March 31, 2010.