Applications open Friday, April 3, 2020.
The Small Business Administration (SBA) Paycheck Protection Program (PPP) provides loans of up to $10M to ESEs with no more than 500 employees. These loans can cover expenses incurred between February 15 and June 30, 2020, for payroll, health benefits, rent, interest on mortgages, utilities, and fixed debts. Interest rates are capped at 4%, and portions of the loan (payroll, rent, interest on mortgages, and utilities) can be forgiven, turning the loan into a grant. The amount forgiven, up to 100%, depends on the extent to which the nonprofit retains employees through June 30.
The sample application is available here.
ESEs can apply for the Paycheck Protection Program through their current lender (if they are SBA approved) or through an existing SBA lender (potential lenders here). ESEs can also get help with the application through their local Small Business Development Center.
To prepare for the application, REDF recommends ESEs:
- Review the sample application
- Gather documentation of the following expenses and continue to maintain records for the eight weeks after receiving this loan:
- Verify the number of full-time equivalent employees on payroll
- Verify dollar amounts of payroll costs
- Covered mortgage interest payments
- Covered rent payments
- Covered utilities
- Review FAQ below – first attachment
NOTE: The Paycheck Protection Program (PPP) provides a finite pool of money so do not delay your application – the fund may dry up.