UPDATE: Fed proposes to expand program to cover nonprofits –
On June 15, 2020, the Federal Reserve Bank of Boston (the “Boston Fed”) announced that it was seeking public comment on its proposal to expand the Main Street Lending Program (the “Program”) to provide loans to non-profit organizations. The Boston Fed has released draft term sheets for two new loan facilities: the New Loan Facility for the Main Street Nonprofit Organization (“New Nonprofit Lending Facility”) and the Extended Loan Facility for the Main Street Nonprofit Organization (“Extended Nonprofit Loan Facility”). The New Non-Profit Loan Facility and the Extended Non-Profit Loan Facility are collectively referred to in this alert as the “Non-Profit Facilities”. The Boston Fed is seeking public comment on the proposed non-profit facilities until Monday, June 22, 2020. See the “Proposed Non-Profit Facilities” section of this alert for a detailed description of these new facilities.
As noted in our previous alerts, the Treasury Department will use funding from the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) to invest $ 75 billion in the program by the through MS Facilities LLC (the “SPV”), a special purpose vehicle operated by the Boston Fed. The program will leverage this Treasury investment up to eight times, for up to $ 600 billion in term loans for eligible borrowers.
Please see the full publication below for more information.