It's easy to get confused about all the different programs and funding the government is providing to banks and institutions to stimulate this economy. Is this money for the business, or for consumers, or what exactly is it for?
The TALF Loan program is one that has confused many consumers and homeowners, so we want to clear it up for you here.
TALF stands for - Term Asset-Backed Securities Loan Facility.
The purpose of this program is NOT to make loans directly to consumers. Instead, it provides loans to businesses who provide auto loans, student loans, credit card and other types of loans to you the consumer. In doing so this programs aim is to open up the frozen credit markets and get the economy moving again.
Let's put this program in context
of how important it is to solving our nations economic woes.
- The Auto Industry Bailout was est. $40 Billion The Homeowners Bailout was funded with $75 Billion The ENTIRE TARP bill passed by the Bush Administration was about $700 Billion. This TALF Loan Program will be initially funded with $200 Billion dollars, and is expected to total over 1 Trillion dollars within two years.
So although you will not be directly applying for a TALF loan, your lender just might be and it makes good sense to understand exactly what these loans are.
Read the Governments latest details on the TALF program
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