The Federal Reserve announced a new program called the Term Asset Backed Securities Loan Facility (TALF) to encourage business to extend credit to consumers and small businesses. The program will allow the Federal Reserve to lend $200 billion to encourage lending for educational, credit card loans and more. The Federal Reserve will accomplish this by purchasing securities backed by various types of debt such as credit cards. In return companies will provide collateral to the Federal Reserve in exchange for the loan. It is hoped that this program will help to energize the economy. This and other programs are one of many attempts by the Federal Government to try and get the economy out of a recession.
I am really encouraged by the many efforts of the government to boost this nation’s economy. As a small business owner I hope to benefit by the new program and I encourage other individuals and business owners to do the same.