Government Guarantee
Enhanced Guarantees on Small Business Loans
Date:
March 16, 2009
Who:
SBA
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Other Business
Action Type:
Government Guarantee Part of a package of government actions by the Treasury Department and Small Business Administration (SBA) on March 16, 2009 to promote small business lending.
The SBA previously provided a maximum guarantee on its 7(a) loans of up to 85% for loans below $150,000, and 75% for loans about $150,000. This guarantee will be raised to 90% for all loans.
Notes:
Provision costs are unknow.
Deficit impact unknown.
Guarantees of Corporate Credit Union Shares
Date:
January 28, 2009
Who:
NCUA
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$80.00 billion Guarantee insures all assets in corporate credit union accounts that are above current $250,000 limit. Guarantee effective until Feb. 28, 2009; credit unions given option to renew guarantee until Dec. 31, 2010.
On 3/2/2009 a release from NCUA announced all of the voluntary participants in the program, including over 20 corporate credit unions.
Notes:
Maximum amount indicates approximate total amount of deposits over insurance limit, as reported in the Wall Street Journal on 1/28/2009 (http://online.wsj.com/article/SB123318420520726249.html). Deficit impact unknown.
FDIC Guarantee of Bank of America Assets
Date:
January 16, 2009
Who:
FDIC
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$3.00 billion Part of multi-agency government guarantee of approximately $118 billion in Bank of America assets, most of which it acquired through the purchase of investment bank Merrill Lynch. Under the terms of the agreement, Bank of America is responsible for the first $10 billion in losses on the assets. Remaining losses are divided 90/10 between the government and Bank of America. For the next $10 billion in losses, the Treasury and FDIC split the government’s 90% share, with the Treasury absorbing up to $7.5 billion and the FDIC up to $
Notes:
Maximum amount figure represents FDIC's share of total assets under guarantee.
Deficit impact unknown.
