The Fed offered up some good news Friday for nonprofit senior living operators in need of financial relief amidst the pandemic.
The central bank announced that its $600 billion Main Street Lending Program will expand to provide two new loan options for a broad set of nonprofit organizations that were in sound financial condition prior to the pandemic. The Fed said nonprofits seeking loans through the program must have been in operation for at least five years, have at least 10 employees and an endowment of no more than $3 billion.
Nonprofits also must borrow at least $250,000 and cannot be too overleveraged. Their ratio of cash, investments and other resources to debt must be greater than 55%. Under the terms of the loans, interest payments aren’t owed for one year, and principal is deferred for two years.
“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.”