UPDATE: Fed Proposes Expansion of Program to Cover Nonprofits -

On June 15, 2020, the Federal Reserve Bank of Boston (the “Boston Fed”) announced it was seeking public feedback on its proposal to expand the Main Street Lending Program (the “Program”) to provide for loans to nonprofit organizations. The Boston Fed released draft term sheets for two new loan facilities: the Main Street Nonprofit Organization New Loan Facility (“Nonprofit New Loan Facility,”) and the Main Street Nonprofit Organization Expanded Loan Facility (“Nonprofit Expanded Loan Facility,”). The Nonprofit New Loan Facility and the Nonprofit Expanded Loan Facility are collectively referred to in this alert as the “Nonprofit Facilities.” The Boston Fed is seeking public feedback on the proposed Nonprofit Facilities through Monday, June 22, 2020. See the “Proposed Nonprofit Facilities” section of this alert for a detailed description of these new facilities.

As noted in our prior alerts, the Department of the Treasury will use funding from the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to make a $75 billion equity investment in the Program through MS Facilities LLC (the “SPV”), a special purpose vehicle operated by the Boston Fed. The Program will leverage this investment from Treasury up to eight times, for up to $600 billion in term loans for eligible borrowers.