04/03/2020

Forgivable Loans Available Starting Today for 501(c)(3) and 501(c)(19) Organizations

These are Paycheck Protection Program loans

Starting on Friday, April 3, 2020, 501(c)(3) and 501(c)(19) organizations with 500 or fewer employees will be able to apply for loans under the Paycheck Protection Program provision of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA expects many small businesses and nonprofits to apply, so eligible organizations should reach out to their banks and begin preparing their applications now to attempt to avoid long waits and processing periods as applications start to pile up.

The U.S. Department of the Treasury and the Small Business Administration (SBA) have released the application form and new guidance to obtain these loans from qualified lenders. To obtain a loan, an eligible nonprofit must submit an application through an SBA- and Treasury-approved bank, credit union, or nonbank lender. The SBA website has a list of current SBA lenders. Other lenders will be available to make loans as soon as they are approved and enrolled in the program.

To apply, borrowers must complete the application (available here) and submit payroll documentation.

Please select this link to read the complete article from Venable LLP.