LAKELAND, FL (April 3, 2020) – Starting today, 501(c)(3) nonprofits can apply for the Paycheck Protection Program. The CARES Act Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses, including 501(c)(3) nonprofits, to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as: 1) The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and 2) Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for six months.
Where can I apply? You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Visit www.sba.gov for a list of SBA lenders. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating.
Additional COVID-19 Nonprofit Resources: The Community Foundation is compiling a list of COVID-19 resources that may be available for 501(c)(3) nonprofits on our Nonprofits Resources page at givecf.org/nonprofits/resources.