Federal Reserve Now Offering Lending to Nonprofit Organizations

Fed Hopes to help stabilize hospitals and social services during pandemic.

The Main Street Lending Program, launched by the Federal Reserve on July 6 to lend money to medium-sized American businesses, is finalizing the legal details necessary to loop nonprofit groups into the program. This is the first time since the Great Depression that such a program allowed the Federal Reserve to lend directly to companies.

Applicants request to borrow money from the Fed, and medium sized businesses that meet their criteria have 95% of their requested loan bought by the Fed so as to reduce the risk banks take in lending. Nonprofit organizations will be able to have up to 60% of their approved loans bought by the Fed, since many continue to receive donations during the pandemic.

As the Lord Leads, Pray with Us…

  • For American businesses impacted by the coronavirus pandemic.
  • For the Federal Reserve as they continue to work to strengthen the economy.
  • That nonprofit organizations would be preserved as they weather this pandemic.

Sources: NPR, AP News, Fox News


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