July 21, 2020
On Friday, the Federal Reserve announced that it will expand its Main Street Lending Program to include nonprofit organizations with as few as 10 and as many as 15,000 employees. Eligible nonprofits must not have endowments in excess of $3 billion and must have received revenue from sources other than donations that covered at least 60 percent of expenses from 2017 through 2019.
Nonprofits can seek funding as little as $250,000 for new loans, up to $300 million for the expansion of existing loans. Principle payments will be deferred for the first two years of the loan, while interest payments will be deferred for one year.
Noting the lack of access to adequate mental health and substance use disorder care that leads many Americans to the utilization of emergency services, over-crowding community hospital emergency departments and drastically increasing health care costs, National Council CEO Chuck Ingoglia submitted comments to the Federal Reserve on two occasions seeking eligibility changes to the Main Street lending program that would include nonprofit organizations.
Please let us know if you have any questions.