The Federal Reserve is proposing a new loan program for charitable nonprofits that may help a few organizations as its currently written, but could help all of us if improved. The Fed’s proposed Nonprofit Loan Program would enable nonprofits with between 50 and 15,000 employees to borrow between $250,000 and $300 million. The proposal is based on the Main Street loan program for for-profit employers and, as written, includes arbitrary terms that will disqualify most nonprofit organizations. Terms like: having a minimum of 50 employees, receiving no more than 30 percent of revenue from donations, and having at least three months cash on hand. Most importantly, the proposed loan program does not include a forgiveness option like the Payroll Protection Program.
Please help improve the Federal Reserve’s loan program for nonprofits by using this template to craft and send comments. We believe it will only take you 15-20 minutes to review and adapt the template to your organization. The Fed only gave us one-week’s notice to submit comments and the deadline is Monday, June 22. You can use the Federal Reserve’s online form to submit your comments, which must be limited to 15,000 characters. Once you’ve you sent in your comments, please share them with us to help us advocate for you and all nonprofits in the state.
Here are the comments the Center submitted based on this template language.