The Federal Reserve Board (FRB) has released long-awaited term sheets for loans to nonprofit organizations under the Main Street Lending Program (MSLP). There are two types of nonprofit loans — the Nonprofit Organization New Loan Facility and the Nonprofit Organization Expanded Loan Facility — which generally mirror the New Loan and Expanded Loan facilities under the MSLP for for-profit businesses. The comment period for these facilities ended June 22, 2020, so revised term sheets addressing comments are expected in the near future.
While the eligibility criteria for lenders have not changed from those under the MSLP facilities for for-profit business loans, nonprofit organizations’ requirements to qualify as borrowers are naturally different and tailored to the general operation of nonprofit businesses. Nonprofit organizations are eligible for these new loan facilities if the organization:
The terms of the MSLP nonprofit facilities are quite similar to those for the for-profit facilities, as summarized by the following table:
As we witnessed with the evolution of the MSLP for-profit facilities, changes to these nonprofit facilities are expected. We will provide updates as these revisions occur.