Is the TALF designed to provide loans directly to small businesses or consumers?
No. The TALF is designed to increase credit availability for small businesses and consumers by facilitating renewed issuance of ABS backed by loans to consumers and small businesses at more normal interest rate spreads. The $10 million minimum loan size and requirement that all loans be secured by eligible collateral will likely make direct borrowing from the TALF infeasible for small businesses and consumers.
