$200 Billion Consumer Credit Loans On The Way

The Federal Reserve Board, in conjunction with the Treasury Department, has announced that a new $200 billion dollar consumer credit stimulus plan will go into affect on March 25th.

The program, which has been dubbed the Term Asset Backed Securities Loan Facility, is designed to once again make credit available to consumers and small business owners in attempt to get the economy back on track.

The credit will be made available for auto loans and credit cards, as well as for loans for consumers and students. There is great hope that this program will provide an immediate impact on the economy by greasing the wheels of commerce.

Any companies that wish to participate in the program must first pledge collateral to do so. The loans will last 3 years.

Some economists are projecting that it could be the catalyst for generating up to $1 trillion in new lending for consumers and small businesses.

Many commercial real estate entities such as rental properties and retail malls that have been hit very hard by the recession will be included into the program at a later date.

This program was originally announced to the public last year as it became very apparent that we were heading down a very rocky road economically. It was originally supposed to start in February.

Federal Reserve Board Chairman Ben Bernancke is optimistic that Term Asset Backed Securities Loan Facility will provide an immediate boost to the economy by getting money into the hands of consumers and small businesses.

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