Educational institutions, hospitals, social service organizations and other nonprofits affected by the pandemic can now receive loans through the Main Street Lending Program.

Authorized by the CARES Act to help small and medium-sized businesses, the Main Street Lending Program was modified in July to include nonprofits and today became fully operational, according to a statement from the Federal Reserve Bank of Boston, which administers the program.

Small and mid-sized businesses and now certain nonprofit organizations that were in sound financial condition prior to the pandemic can apply for Main Street loans.

“Nonprofit entities – including most hospitals, educational institutions, and social service organizations – play critical roles in our society and our economy, while employing a significant share of the country’s workforce,” Boston Fed President Eric Rosengren said in a statement.

The loans are available through lenders that have registered to participate in the program. Lenders use both the Main Street and their own underwriting standards to approve loans, and the Fed purchases a 95 percent interest in the loans. The Fed began purchasing business loans in July.

The Boston Fed in its statement encouraged lenders to begin submitting qualifying loans approved for nonprofit organizations and to continue submitting loans to for-profit businesses.

Some of the community banks listed on the Boston Fed’s website as accepting new for-profit and nonprofit customers for the Main Street Lending program include Envision Bank, Fall River-based BankFive, Leaders Bank, New Valley Bank & Trust, Stoneham Bank, Webster Five and Westfield Bank. Credits unions listed as accepting new nonprofit and business customers include GFA Federal Credit Union and Workers Credit Union.

The Fed offers two facilities for nonprofit organizations. Nonprofit New Loans have a minimum loan amount of $250,000 and a maximum loan of the lesser of $35 million or the borrower’s average 2019 quarterly revenue. Nonprofit Expanded Loans have a minimum loan amount of $10 million and a maximum loan of the lesser of $300 million or the borrower’s average 2019 quarterly revenue.

Nonprofits must have been in operation for at least five years and have an endowment of less than $3 billion. Other criteria include:

• Minimum 10 employees.
• 2019 operating margin of 2 percent or more.
• Current cash on hand to cover 60 days.
• Total non-donation revenues equal to or greater than 60 percent of expenses for the period from 2017 through 2019.
• Current debt repayment capacity – ratio of cash, investments and other resources to outstanding debt and certain other liabilities – of greater than 55 percent.