The Federal Reserve recently announced a new proposal to expand its Main Street Lending Program to nonprofit organizations. Public comments may be made to the Federal Reserve via email, here, until Monday, June 22, 2020.
The Main Street Lending Program is the Federal Reserve’s existing lending program for small and medium-sized businesses and was previously available only to for-profit businesses. A description of the current Main Street Lending Program may be found here.
The Federal Reserve proposed two new Main Street lending facilities for nonprofit organizations: the Nonprofit Organization New Loan Facility (“NONLF”); and the Nonprofit Organization Expanded Loan Facility (“NOELF”). The proposed terms of each facility are set forth in the table below.
The NONLF and NOELF, as proposed, would be available to a 501(c)(3) tax-exempt nonprofit organization or a 501(c)(19) tax-exempt veterans’ organization that:
These initial proposed requirements are subject to change following the public feedback and comment period.
The general terms and conditions of the NONLF and NOELF, as proposed, are set forth in the table below: