Nonprofit Borrower Information

On July 17, 2020, the Federal Reserve modified the Main Street Lending Program to support greater access to credit for nonprofit organizations such as educational institutions, hospitals, and social service organizations. As detailed in term sheets, the Board approved two new loan options to provide support to a broad set of nonprofit organizations that were in sound financial condition prior to the 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, and the chart below has additional details on the final terms.

Potential nonprofit borrowers can familiarize themselves with a short summary, consult the program overview, review eligibility in the program term sheets, and read the Frequently Asked Questions (FAQs) for Nonprofit Lending.

Listing of Lenders Accepting New Customers

Borrowers can view a state-by-state listing of lenders participating in the Main Street Lending Program who are currently accepting applications from new customers by viewing the interactive map located here.

The map reflects a subset of the lenders participating in the Main Street Lending Program—specifically, lenders registered for the program who are accepting applications from new customers, in addition to existing ones; and also elect to be listed. The map will be updated regularly as additional lenders who are accepting applications from new customers complete the registration process for the Main Street program.

Registered lenders wishing to be added to the map or change their status can contact MSLP@bos.frb.org for such requests.

A list of program loans made by lenders is published shortly after the end of each month, and is available here. A list of all lenders who have registered for the program is available here.

Borrowers are encouraged to inquire about Main Street loans with their existing financial institution as well as those on the map. It is important to note that lenders will assess a borrower for a Main Street loan based on meeting the terms of the program and also the lenders’ own underwriting standards, as part of evaluating financial condition and creditworthiness. Lenders’ loan approvals are contingent on those factors.

  Characteristics of Main Street Nonprofit Organization Loan Types
Nonprofit New Loans Nonprofit Expanded Loans
Loan Term 5 years
Minimum Loan Size $250,000 $10 million
Endowment Cap $3 billion
Years in Operation At least 5 years
Eligibility Criteria
(See Term Sheets for More Detail)
  • Minimum employees 10
  • Total non-donation revenues equal to or greater than 60% of expenses for the period from 2017 through 2019
  • 2019 operating margin of 2% or more
  • Current days cash on hand 60 days
  • Current debt repayment capacity—ratio of cash, investments and other resources to outstanding debt and certain other liabilities—of greater than 55%
Maximum Loan Size The lesser of $35 million, or the borrower’s average 2019 quarterly revenue The lesser of $300 million, or the borrower’s average 2019 quarterly revenue
Risk Retention 5%
Principal Repayment Principal deferred for two years; years 3-5: 15%, 15%, 70%
Interest Payments Deferred for one year
Interest Rate LIBOR + 3%

Resources

Nonprofit Organization Frequently Asked Questions

Questions and answers providing more information on the program

Overview: Nonprofit Main Street Loans

A short overview for potential nonprofit borrowers, explaining the core terms of the program and the eligibility criteria.

Listing of All Registered Lenders

Lenders participating in the Main Street Lending Program.

Terms & Conditions

Information on eligibility and terms

Events

Contacts

General Inquiries (Not for Document Submission)

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