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Federal Reserve Announces Opening of the Nonprofit Organization New Loan Facility and Nonprofit Organization Expanded Loan Facility

On September 4, 2020, the Federal Reserve Bank of Boston (the “Reserve Bank”) announced that the Main Street Lending Program’s Nonprofit Organization New Loan Facility (the “NONLF”) and Nonprofit Organization Expanded Loan Facility (the “NOELF” and together with the NONLF, the “Nonprofit Facilities”) are now fully operational and accepting requests for loan participations.

For a detailed discussion of the Nonprofit Facilities, please see our previous blogs entitled Federal Reserve Considers Expanding the Main Street Lending Program to Accommodate Nonprofit Organizations – Comments Welcome, Federal Reserve Approves Nonprofit Organizations for Main Street Lending Program and Releases Updated Term Sheets , Federal Reserve Releases FAQs for Nonprofit Lending Facilities under Main Street Lending Program , and Federal Reserve Releases Amended Form Documents for Its Main Street Lending Program to Accommodate Nonprofit Lending Facilities . Capitalized terms not otherwise defined in this blog have the meanings set forth in the previous blogs.

The Nonprofit Facilities support lending to small and medium-sized nonprofit organizations through the purchase of participation interests in Eligible Loans originated by Eligible Lenders for the benefit of Eligible Borrowers.  The Reserve Bank has set up a special purpose vehicle, MS Facilities LLC (the “SPV”) to facilitate the purchase of such participation interests.  Eligible Lenders interested in participating in the Nonprofit Facilities may now submit a request for the SPV to purchase a participation interest in an Eligible Loan through the Federal Reserve’s online Main Street Lender Portal.

Readers are encouraged to contact Neal Pandozzi at npandozzi@apslaw.com with any questions regarding the Nonprofit Facilities.

About The Author

Neal R. Pandozzi

Neal Pandozzi is Co-Chair of the firm’s Public Finance group.  He has served as bond counsel, disclosure counsel, borrower’s counsel, underwriter’s… Read More

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