Purpose

• This program is designed for strengthening and preserving the confidence in the U.S. banking sector. It was also designed to improve liquidity in the banks. It was created to ease lending to creditworthy businesses and customers.
  
  

Description

• Through this temporary program, the FDIC guarantees newly-issued unsecured debt of institutions that qualify. The FDIC also provides full-coverage of non-interest-bearing accounts with no cap limit.
  
  

Features

• The Debt Guarantee Program covers unsecured debt that is newly-issued, including promissory notes, commercial paper, certificates of deposit and inter-bank funding. The debt must have been issued prior to June 30, 2009. The debt covered by this program cannot exceed 125 percent of the entity's outstanding debt as of September 30, 2008. This program expires on June 30, 2012.
  
  

Uses

• Companies allowed to take advantage of this program are FDIC-insured depository institutions, U.S. bank holding companies and U.S. savings and loan companies.