Published April 23 – UPDATE
This is your second chance to apply for government funding of your payroll and certain other expenses. Details follow below in our original post on the CARES ACT.
The initial Payroll Protection Program (PPP) funds were used up as of April 16th. The Senate passed a bill to fund $310 billion into the Program. The House approved the bill today 4/23. It is important to act quickly if you would like to apply for the program, and follow-up with your bank, if you have already applied.
The SBA is expected to open the application process shortly after the bill is passed. Demand is very high for this program and funds are again expected to run out.
If you haven’t applied for this program yet, contact your organization’s bank and ask if they are processing applications for the PPP. Ready the application (below) and gather the information and documentation your bank will need so you can submit a complete application as soon as the process reopens.
If you have already applied but did not receive funding, contact the bank in which you applied and request the status of your application. Request that your bank review your application and documentation, and approve the loan so that it may be processed as soon as the program reopens.
If your application has not been approved, request the reasons and attempt to satisfy the needed elements.
Originally published April 8
The US government recently passed the CARES ACT which provides grants and loans to organizations, including nonprofits, to bridge the gap and get you through the COVID quarantine. These programs have been simplified for fast, easy application and access to funds. The program is a week old and already heavily applied for. Although you may experience some delay we encourage you to take advantage of this program and get your application in the queue. Please consult your financial advisor for further information.
The PPP is intended to help you maintain your staff for up to an eight week period affected by COVID. The PPP is taken as a government guaranteed loan from a bank and may be converted into a grant if used for qualified payrolls. The amount may be up to $10 million and is calculated based on 2.5 times a specified prior payroll period. The funds may be used for:
- Payroll costs
- Rent or interest on a mortgage
No more than 25% of the forgiven grant amount may be used for non-payroll items. Please consult your financial advisor for specifics.
STEP 1 – FIND A LENDER: https://www.sba.gov/paycheckprotection/find
STEP 2 – FILL OUT APPLICATION: https://www.sba.gov/document/sba-form–paycheck-protection-program-borrower-application-form
Economic Injury Disaster Loans & Grants (EIDL) NOT AVAILABLE AT THIS TIME
The EIDL includes an emergency $10,000 grant to be paid out within days from the Small Business Administration (SBA). The grant does not have to be repaid as long as it is used for:
- Rent or mortgage payments
- Payroll to maintain employees (that is not paid by other programs)
- Meeting certain increased costs due to COVID
- Sick pay for employees affected by COVID
- Certain other obligations affected by COVID
Loans up to $2 million are also available under the EIDL. As with the emergency grant, consult your financial advisor or the SBA rules and regulations.
APPLICATIONS CLOSED: This is program is paused for now. For updates visit: https://covid19relief.sba.gov/#/
For additional support, contact your