Paycheck Protection Applications Open, April 3!
Congress passed a $349 billion stimulus bill last Friday to provide small business loans to nonprofits and for-profit organizations. Under the Paycheck Protection Program (PPP), many foundations and grantee organizations may also qualify for a forgivable loan equal to 2.5 times their average total monthly payroll costs.
To obtain a loan, qualifying small businesses should apply through a Small Business Administration and Treasury approved bank, credit union or nonbank lender. For more information, consult our overview summary and helpful online resource links regarding the Paycheck Protection Program (PPP) and other provisions in the CARES Act including the Economic Injury Disaster Loans as well as an analysis of the employee retention credit and the delay of payroll tax provision.
Two important aspects about the Paycheck Protection Program that will launch tomorrow, April 3, when lenders will be able to start approving the loan applications:
- These loan applications will be funded on a first come, first serve basis until the funds run out! Time may be of the essence for nonprofits as thousands of for-profit small businesses and self-employed owners are likely to apply.
- If an organization obtains a loan under this provision, it cannot also take the employee retention credit, nor can it delay their payroll tax remittance, if they have a loan forgiven under the PPP program.
Questions? Email: firstname.lastname@example.org.
CARES Act and Summary