There are financial resources available to nonprofits through the Paycheck Protection Program (PPP) established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Tips on Applying
The United States Small Business Association (SBA) posted a sample application (on 4/1/20) for seeking a loan, along with detailed instructions for completing and submitting the application. Note that the PPP application may not be submitted to banks until this Friday, April 3.
Loans will be given on a first-come, first-served basis until the funds are spent, so it is important that an organization’s applying move quickly to have the materials you need to complete the application.
Recommended Steps & Resources
Here are some next steps to take in advance of completing and submitting the application:
- Watch this recording of a webinar from the Jewish Federations of North America and review these resources. JFNA’s materials are relevant to organizations in all sectors.
- A simplified analysis and full analysis of the CARES Act.
- A quick comparison between traditional Economic Injury Disaster Loans and PPP Loans.
- A more detailed FAQ document
- A resource that helps individuals, small nonprofits and large nonprofits understand how to access the benefits available to them.
- Check to see if the bank your organization currently works with is on the list of approved lenders. You can apply for a PPP loan through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, or Farm Credit System institution that is participating.
- Refer to the sample calculation document to calculate your payroll costs, which will help you estimate your total loan request.
- Gather internal decision makers (C-suite, board members, finance team, etc.) to review your governance process and reach a consensus on the decision to apply for a loan.
- Complete the sample application for submission on Friday, April 3, 2020.
Speakers for Philanthropy New York’s financial series have created webinars and resources that walk organizations through the application process:
Fiscal Management Associates: Paycheck Protection Program Toolbox & COVID-19 Response Resources
PKF O’Connor Davies, LLP: How to Obtain CARES Act Tax Relief, Loans and Employment Assistance (webinar recording)
Your Part-Time Controller: Staying Afloat: Financial Relief Options for Nonprofit Organizations during the Coronavirus Pandemic, Friday, April 3, 1:00 PM ET.