Mnuchin: Fed To Make $4 Trillion In Business Loans, Send $3,000 Checks To Family Of Four

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by Tyler Durden
Sunday, Mar 22, 2020 - 11:05 AM

The US, in conjunction with the Federal Reserve, will lend up to $4 trillion to businesses affected by the coronavirus pandemic, according to Treasury Secretary Steven Mnuchin.

"Working with the Federal Reserve — we’ll have up to $4 trillion of liquidity that we can use to support the economy," he told Fox News on Sunday.

"Those are broad-based lending programs. ... We can leverage our equity working with the Federal Reserve," he added.

"The president is very determined to protect American workers. The first part are what I call small business retention loans. If you’re a small business, you’ll get two weeks of cash flow to pay your workers. You’ll also get some overhead, and if you do that, your loans will be forgiven." -Steven Mnuchin

Mnuchin said the plan should help small and large businesses "get through the next 90 to 120 days."

The tentative stimulus package will also include an average payment of $3,000 to a family of four, as well as enhanced unemployment, and $4 trillion in liquidity to 'support the economy.'

"The second part is direct deposits. The average direct deposit or check for a family of four will be approximately $3,000 — a bridge for them to get through this quickly. The third component is enhanced unemployment. The fourth component is a significant package working with the federal reserve. We’ll have up to $4 trillion to support liquidity that we can use to support the economy," Mnuchin said.

When asked by host John Roberts how quickly all of this might happen, Mnuchin said "I hope this gets passed on Monday. We’re looking at anywhere from a 10- to 12-week scenario."

"We need to get the money into the economy now. If we do that, we think we can stabilize the economy," Mnuchin added. "I think the president has every expectation that this is going to look a lot better four or eight weeks from now."

"This isn’t the financial crisis that’s going to go on for years ... We’re going to do whatever we need to do to win this war."