The Federal Reserve today expanded the Main Street Lending Program to permit access for a broader range of 501(c)(3) and 501(c)(19) nonprofit organizations.
The final eligibility requirements as revised from the Fed’s June proposal are:
- At least 10 employees, down from 50.
- Non-donation revenues representing at least 60% of revenues in 2017-19, down from 70%.
- A 2019 operating margin of 2%, down from 5%.
- Sixty days of cash on hand, down from 90.
- Debt repayment capacity of at least 55%, down from 65%.
Loan terms—including interest rate, principal repayment deferral, maturity, risk retention and loan minimums and maximums—generally mirror those available to for-profit businesses under the MSLP.
