We continue to be inspired by how you and our communities are rising to meet this incredibly difficult moment. Thank you for your leadership, continued commitment, and heroic efforts to care for yourself, your families, and the communities that we care about so much.
Over the last week, many of us have been diving into analyzing the federal Coronavirus Aide, Relief, and Economic Security (CARES) Act and what it means for nonprofits.
Our colleague Jidan Terry-Koon has taken the lead on gathering information. Here is what she and the team have learned:
The Small Business Administration’s Paycheck Protection Program (PPP) in the CARES Act provides potentially forgivable loans for 501(c)(3) nonprofits with 500 or fewer employees at 2.5 times your average monthly payroll for up to $10M. SBA will forgive loans if all employees are kept on the payroll for eight weeks after the loan originates and the money is used for payroll, rent, mortgage interest, or utilities.
The PPP funding will be administered through local SBA lenders. Although the CARES Act delineated that the application process opened on Friday, April 3rd, not all banking institutions working on this program are ready to accept these applications at this time.
Please find below some useful resources for navigating the Paycheck Protection Program and the CARES Act:
- FMA is offering public clinics daily for nonprofits on the Paycheck Protection Program and CARES Act from 4-5pm Eastern Time (1-2pm Pacific Time). Click here to register for a public clinic.
- FMA’s Payroll Protection Toolbox, which includes a PPP calculator, template for board resolution to authorize the loan, and a script for talking to you bank about PPP
- The Jewish Federations of North America list of SBA lenders in all states
- Independent Sector’s resources for organizations that want to apply for funds
- National Council of Nonprofits Crisis Funding and Debt Resource page
- National Council of Nonprofits’ analysis of the CARES Act, including webinar recording (Mar. 31) “Federal Coronavirus Relief Bills: What Do They Mean for Nonprofits?”
We hope this information is useful to you in these trying times. As always, if you are a grantee, please feel free to reach out to your lead staff contact or program officer with questions. Please follow us on Twitter at @TSSF for the most up to date information.
The San Francisco Foundation Team