(Bloomberg) -- 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.
