The Federal Reserve’s emergency lending program for small- and mid-sized companies is ready to approve loans to nonprofit institutions.
Lenders were encouraged to submit new loans for nonprofits to the Main Street Lending Program, the Boston Fed said in a statement Friday. The program has been purchasing 95% of qualified loans extended to for-profit businesses since July 6. As of Sept. 2, the program held $1.17 billion in loan assets.
The loan volume for the program, which has the capacity to lend $600 billion, has so far disappointed. Fed officials say it remains an important backstop available to companies and nonprofits should the corornavirus pandemic and the economy worsen.
This article was provided by Bloomberg News.