Federal Reserve Governor Lael Brainard’s Message on Nonprofits and the Main Street Lending Program
July 17, 2020
The COVID-19 pandemic is unprecedented in modern times, and nonprofits are on the front lines of the response in your community and around our country. They include hospitals that treat the ill, universities that research potential cures, and service organizations that care for those in need. Nonprofit organizations are critical parts of the economy, accounting for nearly 10 percent of U.S. employment, providing essential services to communities, and supporting innovation and the development of a highly skilled workforce.
When we established the Main Street Lending Program, we heard from many banks the importance of extending it to include their nonprofit customers. Today, I am pleased to announce that we are expanding the Main Street program to provide a bridge for nonprofits, so these important employers can survive the crisis and continue to provide vital services that strengthen the recovery.
In designing this program to reach as many borrowers as possible, we benefited from listening to you and other stakeholders. We appreciate your input, and trust you will find your suggestions reflected in key program features.
To learn more about the Main Street Lending Program and how it may be helpful to nonprofits in your community, review term sheets detailing the Nonprofit Organization New Loan Facility (NOLF) (Off-site, PDF) and the Nonprofit Organization Expanded Loan Facility (NOELF) (Off-site, PDF). I encourage you to take a fresh look at the Main Street Nonprofit Facilities and begin assessing which nonprofits may qualify. Additional legal and operational documents for the program will be issued in coming weeks, as we implement these facilities.
To date, financial institutions representing over half of industry assets have registered for the Main Street Lending Program. Many have expressed their willingness to accept new business and nonprofit customers and are included in the Listing of Lenders Accepting New Customers (Off-site). If you are among the institutions who have already registered, I want to thank you for your participation.
With financing authorized by Congress and backing from the Treasury Department, the Federal Reserve is committed to help keep credit flowing to American households, businesses, and nonprofits. I hope you will join us in this important effort to support jobs and the recovery in your community and across our country.
Sincerely,
Lael Brainard
Member of the Board, Board of Governors of the Federal Reserve System