On April 16, 2020, Southern California Grantmakers submitted the following comments urging the Federal Reserve to include 501(c)(3) nonprofit organizations as eligible applicants for the “Main Street Lending Programs.”
"On behalf of Southern California Grantmakers, we respectfully request that the Federal Reserves “Main Street Lending Programs” include 501(c)(3) nonprofit organizations as eligible applicants.
Charitable organizations are a part of the frontline responders providing healthcare, food, shelter, and other critical services to those in need in our communities. Absent opportunities to access capital, America’s charitable nonprofits and the people our nonprofit partners serve will face a precipitous decline in mission services at a time when our efforts are needed like never before by our communities.
Nonprofits power California’s economy and account for more than 1.2 million jobs – the state’s fourth-largest employer. According to Causes Count, which analyzes the sector’s economic impact, nonprofits generate about 15 percent or one-sixth of California’s Gross State Product.
Philanthropy has responded to this crisis. Our membership of foundations, corporate giving programs, and philanthropists have given with urgency. However, private philanthropy alone cannot address this issue – we simply lack the size, scope, and scale of the Federal Reserve.
Southern California Grantmakers has more than 325 foundation members across the region. We serve as the forum for exchanging ideas, improving cooperation among funders, and increasing our knowledge of community problems to tackle critical issues and achieve shared goals.
*UPDATE: On April 21, 2020, Senate minority leader Chuck Schumer said in a news release that "nonprofits will likely be included" in the Federal Reserve’s Main Street Lending Program. (Read More)