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Buchalter COVID-19 Client Alert: Main Street Lending Program Expanded to Include Nonprofit Organizations 

by Robert A. Willner

Published: July, 2020

Submission: July, 2020


The Federal Reserve has announced that the Main Street Lending Program will now be available to non-profits such as educational institutions, hospitals, and social service organizations, and has issued a set of Frequently Asked Questions regarding the new Nonprofit Organization New Loan Facility and Nonprofit Organization Expanded Loan Facility.  Under the Nonprofit Organization New Loan Facility, eligible non-profits may obtain loans from $250,000 to the lesser of $35M, or the borrower’s average 2019 quarterly revenue.  Under the Nonprofit Organization Expanded Loan Facility, eligible non-profits may obtain loans from $10 million to the lesser of $300M, or the borrower’s average 2019 quarterly revenue.   To be eligible, a non-profit must:

  • Be US-based and operational since at least January 1, 2015;
  • Have either fewer than 15,000 employees or $5 billion or less in 2019 revenues;
  • Have an endowment of less than $3 billion;
  • Have at least a 2% EBIDTA ratio (the ratio of adjusted 2019 earnings before interest, depreciation, and amortization (EBIDA);
  • Have total non-donation revenues equal to or greater than 60% of its expenses between 2017 and 2019.

Additional requirements and criteria for the nonprofit facility loans are found in the FAQs and term sheets for the NONLF and NOELF.  Links to those documents are located on the Federal Reserve MSLP webpage: 


Buchalter’s Commercial Finance Practice Group has organized its attorneys to create in-depth expertise in every aspect and requirement of the Main Street Lending Program.  Buchalter’s Commercial Finance Practice Group is comprised of attorneys with extensive transactional and regulatory expertise, and is one of the largest creditor-focused practice on the West Coast.  Thus, our commercial finance attorneys are uniquely position to advise clients on the MSLP and help structure and document any of the three credit facilities that are offered under the program. Please feel free to contact any of the attorneys in Buchalter’s Commercial Finance Group if you have questions regarding the MSLP or would like to discuss the various options and details under the program.


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