Main Street Lending Program

On July 17, 2020, The Federal Reserve Board announced that it has modified the Main Street Lending Program to provide greater access to credit for nonprofit organizations, including educational institutions, hospitals and social service organizations, that were in sound financial condition before the coronavirus (COVID-19) pandemic.

The Main Street nonprofit loan terms generally mirror those for Main Street for-profit business loans, including the interest rate, principal and interest payment deferral, five-year term and minimum and maximum loan sizes. Nonprofits will be eligible for two loan options (NONLF and NOELF). The minimum loan amount was lowered from $250,000 to $100,000 on October 30, 2020 for the NONLF loan.  The chart below has additional details on the final terms.

Borrower eligibility requirements for the nonprofit loan facilities are modified from the for-profit facilities to reflect the operational and accounting practices of the nonprofit sector and include the following:

• has been in continuous operation since January 1, 2015;
• is not an ineligible business;
• meets at least one of the two following conditions: (i) has 15,000 employees or fewer, or (ii) had 2019 annual revenues of $5 billion or less;
• has at least 10 employees;
• has an endowment of less than $3 billion;
• has total non-donation revenues equal to or greater than 60% of expenses for the period from 2017 through 2019; 
• has a ratio of adjusted 2019 EBIDA to unrestricted 2019 operating revenue, greater than or equal to 2%;
• has a ratio (expressed as a number of days) of (i) liquid assets at the time of loan origination to (ii) average daily expenses over the previous year, equal to or greater than 60 days;
• at the time of loan origination, has a ratio of (i) unrestricted cash and investments to (ii) existing outstanding and undrawn available debt, plus the amount of any loan under the Facility, plus the amount of any CMS Accelerated and Advance Payments, that is greater than 55%;
• is created or organized in the United States or under the laws of the United States with significant operations in and a majority of its employees based in the United States;
• does not also participate in the NOELF, the MSNLF, the MSPLF, the MSELF, the Primary Market Corporate Credit Facility, or the Municipal Liquidity Facility; and
• has not received specific support pursuant to the Coronavirus Economic Stabilization Act of 2020 (Subtitle A of Title IV of the CARES Act).

Additionally, each nonprofit must be a tax-exempt organization under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code. Other forms of organizations may be considered for inclusion under the Facility at the the discretion of the Federal Reserve.

See the footnotes in the term sheets and chart below for additional details on eligibility requirements.