Posted on February 18, 2010 by Hunton & Williams LLP Print This Article

Federal Reserve Raises Discount Rate

The Federal Reserve Board announced today that the primary credit rate, the interest rate it charges on emergency loans to banks, would be raised by one-quarter percentage point from .5 percent to .75 effective Friday, February 19, 2010.  Also known as the discount rate, the primary credit rate had been at .5 percent since December 2008.

Click here for further details from the Federal Reserve Board.

Posted on February 3, 2010 by Hunton & Williams LLP Print This Article

TARP Initiative for Small Businesses Detailed

Today the Obama Administration detailed revised terms for a program designed to foster lending to small businesses in underserved communities through the Troubled Asset Relief Program (TARP).  Originally announced in October 2009, the program provided lower-cost capital to Community Development Financial Institutions (CDFIs), such as community banks, thrifts and credit unions, which then provide loans to small businesses in underserved communities.  The newly announced rules increase the amount of capital available to CDFIs, from 2 percent of risk weighted assets to 5 percent, and expands the number of institutions who qualify as a CDFI.  

Click here for the Department of Treasury's key terms and enhancements to the TARP initiative.