Fed is extending its lending programs until year-end

The US Federal Reserve it is extending its menu of lending programs to businesses, governments and individuals to the end of 2020.

Originally set to expire Sept. 30, the myriad facilities, stretching from credit to small businesses up to the purchase of junk bonds now will stretch to Dec. 31.

The Fed began rolling out the initiatives as market functioning broke down in March. A lack of liquidity stemming from fears over the coronavirus crisis froze markets and pushed the Fed into various credit facilities, a number of which had their origins during the financial crisis.

A lending program for local and state governments already had been set to run to Dec. 31 and the commercial paper facility, which provides short-term funding for businesses, expires March 17, 2021.