Expansion of Main Street Lending Program to Certain Nonprofit Organizations

August 19, 2020

Michele Wales, CPA

On July 17, 2020, the Federal Reserve expanded its Main Street Lending Program (the Program) to support lending to small and medium-sized nonprofit organizations. The availability of additional credit through the Program is intended to help small and medium-sized nonprofit organizations that were in sound financial condition prior to the onset of the COVID-19 pandemic maintain their operations and payroll until conditions normalize.

The Program consists of two components (or “facilities”) available to nonprofit organizations: the Nonprofit Organization New Loan Facility (NONLF) and the Nonprofit Organization Expanded Loan Facility (NOELF).

Eligible lenders may originate new loans (under the NONLF) to new or existing customers or increase the size of (“upsize”) existing loans (under the NOELF) made to eligible borrowers. Eligible lenders include U.S. federally insured depository institutions (including banks, savings associations, and credit unions), as well as a U.S. branch or agency of a foreign bank.

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BMWL Can Help

BMWL’s COVID-19 Task Force is ready, willing, and able to help our clients navigate the Nonprofit Main Street Lending Program. Nonprofit organizations that would like the assistance of our Task Force in addressing the Program should contact us at [email protected].

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