Payment Protection Program (4/9/2020)
Many businesses, including nonprofit organizations, may be eligible for potentially forgivable loans from the Small Business Administration. Loans are equal to up to 2½ times the average monthly payroll costs (maximum of $10 million). Forgiveness is based on the use of the funds during an 8-week period beginning on the loan date, and to be forgivable they must be used 75% for payroll costs (as defined in the rules) and any remaining funds can be spent on interest on mortgage debt, or rent and utilities. The interest rate on these 2-year loans is 1% and payments are deferred for 6 months. Forgiven debt would not be treated as income for tax purposes. Loans are only available until June 30, 2020 (unless Congress extends the authorization in future legislation).
Please contact your lender for additional rules and definitions. Organizations can apply for a PPP loan through any federally insured depository (FDIC) institution, federally insured credit union, or participating Farm Credit System institution. *Lenders began processing loan applications on Friday, April 3, 2020.*
The bill only established a fund of $349 billion, so competition for loans will be intense.
"Payment Protection Program Loans Overview: How to Apply" (Fiscal Management Associates)
Nonprofit Business Operations and Coronavirus Response (3/31/2020)
Over the past month, Congress has passed a number of bills in response to the novel Coronavirus outbreak: the Families First Coronavirus Relief Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Taken together, these bills will provide close to $3 trillion in economic relief to individuals, families, businesses, and communities.
Some of the provisions in these bills provide targeted assistance to nonprofits serving those in need, while others make changes to policies that could affect decision making regarding staff and operations. Download a primer from our COVID-19 response webpage, and stay tuned to www.svdpusa.org/covid-19 for more information and updates.
S 3548 Coronavirus Aid, Relief, and Economic Security (CARES) Act (3/26/20)
The Senate-passed Coronavirus Aid, Relief, and Economic Security (CARES) Act (March 25), if passed by the House and signed by the President, will provide almost $2 trillion in quick, economic relief to individuals, families, businesses, and communities. Highlights include cash assistance to all individuals and families, expanded unemployment insurance, and assistance to nonprofit organizations. See a complete summary with links to more information here
HR6201 Familes First Coronavirus Response Act - How this affects SVdP (3/18/20)
On March 18 the Senate passed, and the President signed, the Families First Coronavirus Response Act (HR 6201). The new law takes effect no later than April 2 and will expire December 31, 2020 (unless Congress extends some or all provisions).
The bill provides a variety of assistance to populations affected by the COVID-19 pandemic, as well as the economy as a whole. The bill also provides protections to workers who are or could be effected by the virus, as well as supports for employers who could incur substantial increased costs.Read a full summary of the bill here