In a press release on July 17th, the federal reserve board announced that the Main Street Lending Program will be extended to more nonprofits.
History of the Main Street Lending Program
The Main Street Lending Program was established in April of 2020 offering $2.3 trillion in loans. This financial support is meant to aid small to medium-sized businesses in surviving and recovering from setbacks caused by the COVID-19 pandemic. These loans are only available to businesses that were financially sound before the pandemic but are now struggling.
Moving forward with the program, Federal Reserve Chair Jerome H. Powell was quoted on the importance of nonprofits: “Nonprofits provide vital services across the country and employ millions of Americans. We have listened carefully and adapted our approach so that we can best support them in carrying out their vital mission during this extraordinary time.”
Updates Extending Nonprofit Reach
The federal reserve board stated their goal in these changes is to ”provide greater access to credit for nonprofit organizations such as educational institutions, hospitals, and social service organizations”. This initiative is backed by two new loan options available to eligible not-for-profit organizations.
Nonprofit New Loans and Nonprofit Expanded Loans offer financial support to nonprofits of varying sizes to ensure these organizations stay afloat amidst the pandemic. Terms of these new Main Street Nonprofit Loans are generally similar to those we’ve seen for Main Street for-profit business loans. These similarities include the minimum and maximum loan sizes, five-year term, interest rate, and principal and interest payment deferrals. Especially in a time of crisis, it is crucial these organizations remain fully operational so they can continue providing help to those in need.
Learn More About the Main Street Lending Program & Nonprofit Organizations
Read the full press release by the federal reserve on Main Street Lending Program Modifications to learn more about program details and eligibility.
Learn how Hall & Company works with Nonprofit Organizations.
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