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Federal Reserve Offers Nonprofits Greater Access to Credit Through Main Street Lending Program

The Federal Reserve announced June proposal.
  • * A minimum of 10 employees (previously 50)
  • * Total non-donation revenues equal to or greater than 60 percent of expenses for the period from 2017 through 2019 (previously 70 percent of revenues)
  • * 2019 operating margin of 2 percent or more (previously 5 percent)
  • * Current days cash on hand for 60 days (previously 90 days)
  • * Current debt repayment capacity—ratio of cash, investments and other resources to outstanding debt and certain other liabilities—of greater than 55 percent (previously 65 percent)

"Nonprofits provide vital services across the country and employ millions of Americans," Federal Reserve Chair Jerome H. Powell said. "We have listened carefully and adapted our approach so that we can best support them in carrying out their vital mission during this extraordinary time."