Camps May Be Eligible for Expanded Main Street Loan Program

July 21, 2020
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Effective July 17, 2020, the Federal Reserve has expanded its Main Street Lending Program to include nonprofits with at least 10 employees, opening another potential avenue for camps that meet this and other requirements to receive financial assistance during the coronavirus pandemic. The original proposal required a minimum of 50 employees. As a direct result of ACA’s advocacy on the issue, this threshold was lowered to 10, making this potential relief vehicle accessible to many more camps in the country.

POLITICO Pro reporter Victoria Guida said, “Like regular businesses, nonprofits have been hard hit by the virus and have called for more help beyond the PPP loans available to smaller entities.” The Main Street Lending Program is designed to help small and medium-sized businesses cover expenses through the economic downturn caused by COVID-19.

This Main Street loan expansion may help camps who operated in the black in 2019 (with depreciation added back in). Program lenders want to see a strong balance sheet, meaning this loan is potentially an option for nonprofit camps with short-term financial issues but long-term viability.

Here are some key requirements to consider in determining if the Main Street Lending Program is a good option for your business. Your camp:

  • Has been in continuous business since January 1, 2015
  • Has between 10 and 15,000 employees
  • Has an endowment of less than $3 billion
  • Has non-donation revenue of more than 60 percent of expenses from 2017 through 2019
  • Is a US company
  • Has not received CARES Act funding other than a PPP loan (Federal Reserve, 2020)

Given the cash and liquidity requirements of this loan program, camps should meet with their lenders to determine eligibility and best timing for application.

Get more information on Main Street loan requirements.