Main Street Lending Program Expanded

On July 17, 2020 the Federal Reserve expanded its Main Street Lending Program to support lending to small and medium-sized nonprofit organizations.

The central bank also changed the minimum employee provision for nonprofits to 10 from 50, allowing smaller groups to participate.

Organizations that were on sound financial footing pre-crisis and only damaged by the outbreak of the virus can tap the program.

Borrower eligibility criteria include:

  • Must have been in continuous operation since January 1, 2015
  • Minimum of 10 employees
  • Endowments of less than $3 billion
  • Total non-donation revenues equal to or greater than 60 percent of expenses for the three-year period 2017-2019
  • 2019 operating margin of at least two percent
  • Minimum of 60 days' current cash on hand
  • Ratio of liquid assets (cash and investments) to outstanding debt of greater than 55 percent

In addition, applicants must have significant operations and a majority of its employees in the United States.

For additional information, see BMWL's Nonprofit Special Alert.


This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

Navigation