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Fed opens "Main Street" to non-profits, eases terms from original plan

Credit: REUTERS/BRENDAN MCDERMID

The U.S. Federal Reserve on Friday opened its "Main Street" loan program to non-profits, allowing education, health, social service and other groups with as few as 10 employees to tap central bank funding.

July 17 (Reuters) - The U.S. Federal Reserve on Friday opened its "Main Street" loan program to non-profits, allowing education, health, social service and other groups with as few as 10 employees to tap central bank funding.

The loan terms were broadened significantly from an initial proposal floated by the Fed in mid-June, including lowering the employee threshold from 50 workers and easing some revenue and operating margin requirements developed as a way to rate the financial health of non-profit organizations.

“Nonprofits provide vital services across the country and employ millions of Americans,” Federal Reserve Chair Jerome Powell said in a statement. “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.”

(Reporting by Howard Schneider Editing by Chizu Nomiyama)

((howard.schneider@thomsonreuters.com; +1 202 789 8010;))

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