How the federal stimulus package can help your nonprofit: the Paycheck Protection Program (PPP)

PPP is a U.S. Small Business Administration (SBA) loan that helps small businesses, including nonprofits, keep their workforce employed during the Coronavirus (COVID-19) crisis.
Who Can Apply
This Paycheck Protection Program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private nonprofit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
The SBA resumed accepting Paycheck Protection Program (PPP) loan applications on Monday, April 27 at 10:30 AM EDT from approved lenders on behalf of any eligible borrower. It is imperative that you contact your lender as soon as possible. If you do not have an existing relationship with an approved lender, please see other options listed below.
For more information, visit the SBA website.
As always, ESC is available to you as a resource. We have finance consultants standing by who can answer questions and provide guidance on the PPP. If you’re interested in a free call to discuss the program or your application, please email and we will put you touch with an ESC consultant.
About the Paycheck Protection Program (PPP)
How to Apply
Applications need to be submitted through a lender. See a list of participating lenders here or if you do not have an existing relationship with a lender try:
There is also additional guidance on how to calculate loan amounts.
If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. Due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of .5%.