The Fed is mulling new program for nonprofits.
The Fed Thursday said it was making some adjustments to its planned $600-B “Main Street” lending program based on public comments and said it is mulling a separate approach to meet the” unique needs” of non-profit organizations.
In a statement, the Fed said 1 adjustment would allow firms with slightly more employees to participate in the plan, which is designed to help firms that are neither too small to get government grants nor so big they can access the capital markets.
Firms with up to 15,000 staff or up to $5-B in annual revenue are now eligible, compared with the initial plan which was for companies with up to 10,000 employees and $2.5-B in revenue.
The thrust of the changes is to open the program up to more participants in as many ways as possible. Minimum loans sizes were reduced and maximum loan sizes were increased. All of the money will be forgivable loans and not grants.
Fed Chairman Jerome Powell said Wednesday he’s worried the coronavirus epidemic is going to cause lasting damage to the economy and that the federal government will likely need to spend more to help the economy.
On the issue of nonprofit groups, the Fed said that it is evaluating a separate approach to meet their unique needs.
Nonprofits are not eligible for the Main Street lending program now, the Fed said, and is seeing if it can come up with a lending program that would have high demand from the charitable sector.
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