The Board's H.4.1 statistical release, "Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks," has been modified to include information related to Main Street
Lending Program (MSLP). Under the MSLP, the Federal Reserve Bank of Boston (FRBB) is operating three
facilities: Main Street New Loan Facility, Main Street Priority Loan Facility, and Main Street Expanded Loan Facility. These facilities operate through the MS Facilities LLC (MSF LLC), a special purpose vehicle that was formed to help ensure credit flows to small and medium-sized businesses.
On April 30, 2020, the Federal Reserve announced the MSLP. On June 1, 2020, the Federal Reserve Bank of New
York (FRBNY) received Treasury's equity contribution for the MSLP program on behalf of the FRBB.
Consistent with generally accepted accounting principles, the assets and liabilities of MSF LLC have been
consolidated with the assets and liabilities of the FRBB in the preparation of the statements of condition shown
on the release because the FRBB is the managing member of MSF LLC. The net portfolio holdings of MSF LLC
appear as an asset in the statement of condition of the FRBB (table 5), the consolidated statement of condition of
all Federal Reserve Banks (table 4), and factors affecting reserve balances of depository institutions (table
1). The amount provided by the U.S. Treasury as credit protection for the MSF LLC is included in "Treasury
contributions to credit facilities" in tables 1, 4, and 5.
On May 29, 2020, pursuant to the Municipal Liquidity Facility LLC (MLF LLC) agreements, 85% of the
Treasury's equity contributions were invested in nonmarketable Treasury securities and reported in "Net portfolio
holdings of Municipal Liquidity Facility LLC" in tables 1, 4, and 5. As of June 3, 2020, the MLF LLC executed its
first transaction. Upon settlement, FRBNY will extend a loan.
