Sector Policy (Non-Financial)
Conservatorship of Fannie/Freddie
Date:
September 7, 2008
Who:
FHFA
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Government Conservatorship
Deficit Impact:
$389.00 billion Placement of Fannie Mae and Freddie Mac into government conservatorship by the Federal Housing Finance Agency, until the institutions are deemed to have been stabilized. Conservatorship was coupled with other actions to ensure liquidity.
CBO estimates that $291 billion in federal outlays went towards the conservatorship of Fannie and Freddie in 2009, with a projected $98 billion in subsidies over the next 10 years.
Notes:
Deficit impact represents CBO's estimate of the cost of bringing Fannie Mae and Freddie Mac "on-budget" for 2009-2019 (per CBO's proposed budgetary treatment) calculated by assessing the risk-adjusted net present value of Fannie Mae's and Freddie Mac's current net liabilities, plus their subsidy costs for 2009. (http://www.cbo.gov/ftpdocs/108xx/doc10878/01-13-FannieFreddie.pdf).
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.
Support of Small Business Credit
Date:
March 16, 2009
Who:
SBA
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Other Business
Action Type:
Loans
Maximum Amount:
$15.00 billion Program begun by the Treasury and Small Business Administration (SBA) to address a systemic lack of small business credit.
Notes:
Maximum amount represents announced upper limit for SBA-backed security purchases. Amount spent is total investment amount as of 3/22/2012. Deficit impact unknown.
