Fed Hopes to help stabilize hospitals and social services during pandemic.
The Main Street Lending Program, launched by the Federal Reserve on July 6 to lend money to medium-sized American businesses, is finalizing the legal details necessary to loop nonprofit groups into the program. This is the first time since the Great Depression that such a program allowed the Federal Reserve to lend directly to companies.
Applicants request to borrow money from the Fed, and medium sized businesses that meet their criteria have 95% of their requested loan bought by the Fed so as to reduce the risk banks take in lending. Nonprofit organizations will be able to have up to 60% of their approved loans bought by the Fed, since many continue to receive donations during the pandemic.
As the Lord Leads, Pray with Us…
- For American businesses impacted by the coronavirus pandemic.
- For the Federal Reserve as they continue to work to strengthen the economy.
- That nonprofit organizations would be preserved as they weather this pandemic.
Sources: NPR, AP News, Fox News
