The program is administered by the Federal Reserve Bank of Boston, which has established a special purpose vehicle (SPV) to purchase loan participations from eligible lenders across the U.S. The program was established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary. The Department of the Treasury will make a $75 billion equity investment in the SPV in connection with the Program. The funds invested by the Treasury Department were appropriated to the Exchange Stabilization Fund under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Documents related to the establishment of the SPV and the Treasury’s equity investment are provided here.