Small Business Administration’s Paycheck Protection Program — Nonprofits with 500 or fewer paid employees (counting all full-time and part-time employees equally) will be eligible for SBA emergency loans of 2.5 times monthly payroll expenses. Loan Forgiveness:Nonprofits that keep their employees on the payroll from February 15 to June 30 could have their loans forgiven, turning the loan into a grant. The amount of loan forgiveness would be equal to the amount spent by the borrower during an 8-week period after the origination date of the loan. The portion of the loan that can be forgiven would be reduced by an amount related to positions that have been eliminated and wages that have been reduced, unless those positions and wages are restored by June 30, 2020. Loans will be available directly through SBA and Treasury approved banks, credit unions, and some nonbank lenders. See SBA’s Find A Lender Page to locate an approved lender near you.
Small Business Administration’s Economic Injury Disaster Loans:Eliminates creditworthiness requirements. Available to nonprofits to help overcome temporary loss in revenue caused by COVID-19. The interest rate is 2.75%, with repayment terms of up to 30 years. The application is straightforward and can be Completed Online Here. This loan does not include forgiveness provision. Organizations cannot receive both SBA loans, unless the loan applications are for different purposes.