21 May Paycheck Protection Program (PPP) Resources
Many nonprofit organizations, including our grantee partners, have been exploring loans from the Paycheck Protection Program (PPP). There are several questions about the loan forgiveness process and how it will work. In partnership with Fiscal Management Associates and IFF, we would like to share some nonprofit-focused PPP resources that can help navigate the application process and beyond.
INTERESTED IN A LOAN?
It’s not too late to apply for a loan, and IFF can coach you through the process. They are working with many nonprofits throughout the region, and no loan is too small. Visit www.iff.org/p3 to get started.
ALREADY HAVE A LOAN?
Now it’s time to focus on making sure that loan gets forgiven. FMA is offering two live clinics and other on-demand resources to help nonprofits that have received PPP loans understand how to manage their PPP funds and navigate the SBA’s loan forgiveness process, including the newly released Forgiveness Application form.
Clinic #1 – Managing Your Loan & Forgiveness 101 will include detailed guidance on how organizations can and cannot spend the PPP funds, how to properly account for and track the funds, what we know to-date about how forgiveness will be calculated, and what to expect from the forgiveness process. There are three opportunities to attend this clinic.
Clinic #2 – Navigating the Forgiveness Process & Submitting Your Forgiveness Paperwork will cover the nuts-and-bolts of forgiveness calculations, documentation, and the processes for working with your lenders based on the latest SBA guidance. Stay tuned for clinic dates throughout June.
On-Demand Resources are also available in FMA’s PPP Toolbox, which includes regularly updated guidance, FAQs, a loan forgiveness estimator, revenue scenario planning tools, cash flow projection templates and tutorials, webinars, and more.
Regardless of whether you sought or received a PPP loan, the COVID-19 pandemic is forcing difficult decisions on many nonprofits. That’s why FMA has put together a third clinic, as well as other on-demand resources, focused on the principles of successful scenario planning.
Clinic #3 – Beyond PPP: Scenario Planning will help nonprofits adjust their original strategic plans and budgets in the face of difficult, complex financial and human capital crises. There are two opportunities to attend this clinic.
More about the Paycheck Protection Program:
The Paycheck Protection Program — sometimes called PPP or P3 — is essentially a cash-flow assistance program guaranteed by the federal government. Here are the bullet-points:
- These are largely “forgivable loans” – which basically means they could turn into grants if you cover eligible expenses (see this Q&A for more details)
- Loans are available to nonprofits with up to 500 employees
- Loans are for up to $10 million
- Loans are designed to cover costs related to payroll, operations, rent, utilities, and interest on debt
- Collateral and personal guarantees are not required
- Loans are available through SBA-qualified lenders (CRF is qualified)