dual announcement of the smccf and pmccf was well received by the market. between march 23 and april 6, credit spreads for investment - grade bonds declined substantially. while the pmccf has not purchased any bonds since it opened, it serves as a backstop should markets enter another period of stress. the term asset - backed securities loan facility the term asset - backed securities loan facility ( talf ) supports the flow of credit to consumers and businesses by enabling the issuance of asset - backed securities ( abs ) guaranteed by newly and recently originated consumer and business loans. 4 / 5 bis central bankers'speeches under the talf, the federal reserve bank of new york lends to an spv. the spv will make up to $ 100 billion of three - year term loans available to holders of certain triple a - rated abs backed by student loans, auto loans, credit card loans, loans guaranteed by the small business administration ( sba ), and certain other assets. the federal reserve lends an amount equal to the market value of the abs less a haircut and the loan is secured at all times by the abs. with funding from the cares act, treasury has committed to make a $ 10 billion equity investment in the spv. as of september 18, the talf has extended $ 2. 9 billion in loans since its launch on may 20. loans have been collateralized by sba - guaranteed abs, commercial mortgage - backed securities ( cmbs ), and premium - finance and student - loan abs. the announcement and presence of the talf has helped improve substantially liquidity in the abs markets, including those for cmbs and collateralized loan obligations, with spreads in some abs sectors returning close to normal levels. the talf interest rates are attractive to borrowers when market conditions are stressed, but not in normal conditions. while the facility is authorized to extend up to $ 100 billion in loans, total take - up will likely be much less unless abs market conditions worsen. 5 / 5 bis central bankers'speeches

main street lending program ( main street ) to support lending to small and medium - sized businesses and nonprofit organizations that were in sound financial condition before the onset of the covid - 19 pandemic and that have good longer - term prospects but which have encountered temporary cash flow problems due to the pandemic, and are not able to get credit on reasonable terms as a result. in addition to providing loans for borrowers in current need of funds, main street offers a credit backstop for firms that do not currently need funding but may if the pandemic continues to erode their financial condition. under main street, the federal reserve bank of boston has set up one spv to manage and operate five facilities : the main street new loan facility ( msnlf ), the main street priority loan facility ( msplf ), the main street expanded loan facility ( mself ), the nonprofit organization new loan facility ( nonlf ), and the nonprofit organization expanded loan facility ( noelf ). the spv will purchase up to $ 600 billion in main street loan participations, while lenders retain a percentage of the loans. main street loans have a five - year maturity, no principal payments in the first two years, and no interest payments in the first year. businesses with less than 15, 000 employees or 2019 revenues of less than $ 5 billion are eligible to apply for main street loans. available loan sizes span from $ 250, 000 to $ 300 million across the facilities and depend on the size and financial health of the borrower. with funding from the cares act, the department of the treasury has committed to make a $ 75 billion equity investment in the spv. the business facilities ( msnlf, msplf, and mself ) and nonprofit facilities ( nonlf and noelf ) have broadly similar terms, but differ in their respective underwriting standards. the business facilities use the same eligibility criteria for lenders and borrowers and have many of the same terms, while other features of the loans extended in connection with each facility differ. the loan types also differ in how they interact with the borrower ’ s outstanding debt, including with respect to the level of pre - crisis indebtedness a borrower may have incurred. similarly, the nonprofit facilities have many of the same characteristics, but some features of the loans extended in connection with each facility differ. eligible lenders may originate new loans under msnlf, msplf, and nonlf