State Treasurer Fiona Ma has authorized the Local Agency Investment Fund (LAIF) to offer special emergency accounts to agencies receiving funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“We want to do our part to help local agencies by giving them the chance to invest critical dollars for pandemic relief in a fund that earns competitive yields, but also is safe and liquid,” said Treasurer Ma. “This fund is professionally managed and requires no extra money from taxpayers.”
The CARES Act, part of the economic stimulus package passed by Congress, has allocated about $6 billion to local agencies in California. Below are key details about the accounts:
- Local agencies that have received CARES Act funds can open separate, emergency LAIF accounts to deposit these funds.
- Prospective emergency account applicants that do not already have a regular LAIF account will need to meet the qualifying guidelines for LAIF participation.
- One deposit would be allowed into the account unless additional COVID-related assistance is provided in the future by the federal or state government.
- Proof of amount of assistance received would be required at the time the account is opened.
- Account would have the same $75 million cap as a regular LAIF account.
- All withdrawals must be completed by telephone and scheduled no less than two business days prior to the withdrawal date.
For more information regarding special emergency LAIF accounts, visit LAIF’s website at https://www.treasurer.ca.gov/pmia-laif/laif/cares.asp.
This article was released by the California Treasurer’s Office.