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 borrowers can familiarize themselves with 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.
|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|
(See Term Sheets for More Detail)
|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|
|Principal Repayment||Principal deferred for two years; years 3-5: 15%, 15%, 70%|
|Interest Payments||Deferred for one year|
|Interest Rate||LIBOR + 3%|