Your Part-Time Controller is dedicated to providing up-to-date information regarding the COVID crisis and new legislation that will affect nonprofits. Follow the links below to access resources that could help you.
Did you miss it? view the RECORDING of our webinar, Staying Afloat held April 3, 2020 at 1pm! **Please note- the webinar presentation was based on information released prior to April 3, 2020. Since then, some information may have changed.
URGENT, April 3, 2020: Overnight the Interim Final Rule and the Final Borrower Application was issued for Paycheck Protection Program Loans (PPPL). Eligible organizations (for nonprofits- 501 (c) (3) and 501 (c) (19)’s with 500 or fewer employees) must apply for this loan through an approved Small Business Administration (SBA) lender. Loans are forgivable if certain criteria are met and provided on a first come, first served basis.
WHAT YOU NEED TO DO
CONTACT YOUR BANK REPRESENTATIVE ASAP TO FIND OUT WHAT YOUR BANK IS DOING. Some banks are accepting applications today and some banks are not ready.
Complete the application (see link below) and gather the necessary documentation.
WHAT YOU NEED TO KNOW
Today, April 3, 2020, nonprofits can begin applying for Paycheck Protection Program Loans (PPPL). PPPL is a $349 billion federal program, administered by banks and credit unions designed to help small business and nonprofits preserve jobs during the coronavirus pandemic. Loans under the PPPL are forgivable if certain criteria are met. Loans will be issued on a first come, first served basis.
Rules for PPPL
Late last night the Small Business Administration (SBA) issued an “Interim Final Rule” on the PPPL, aka the rules of engagement for this program.These can be found on the SBA website.
The draft application that was issued earlier in the week has been updated. The Final Borrower Application Form can be found on the US Treasury website.
Lenders will be asking for certain information to support the PPPL application.
Find a Lender
Nonprofits must apply through an approved SBA Lender for PPPL. SBA has published a searchable list of eligible lenders here.
NOTE- we recommend that nonprofits contact banks for which they already have an existing relationship – i.e. deposit, loan or line of credit accounts. It is our understanding that it will slow down the PPPL process significantly if nonprofits try to apply for PPPL through an institution for which they do not have an existing relationship due to banking regulations called “Know Your Customer.”
Apply for an Economic Injury Disaster Loan (EIDL) and $10k Emergency Grant, through the SBA.