NHCDA COVID-19 Funding Information Jillian Lynch / posted on Monday, April 6, 2020 COVID‐19 Funding Information Economic Injury Disaster Loan (EIDL) Emergency Advance Part of the CARES Act through SBA $10,000 paid within 3 days $10,000 advance is treated as a grant (complete loan forgiveness if you do not apply for Paycheck Protection Program) Paid directly from SBA Apply: https://covid19relief.sba.gov/#/ Paycheck Protection Program (PPP) Part of the CARES Act through SBA The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. 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. The Paycheck Protection Program will be available through June 30, 2020. Lenders may begin processing loan applications as soon as April 3, 2020 Pays 250% of your monthly payroll Must get a loan from local lender Fact Sheets https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz _loan_final.pdf https://www.rubio.senate.gov/public/_cache/files/ac3081f6‐14ae‐4e6f‐9197‐ 172ede28badd/71AB6CB05A08E369E0D488A80B3874A5.faqs‐‐‐paycheck‐protection‐ program‐faqs‐for‐small‐businesses.pdf https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact %20Sheet.pdf Current application: https://home.treasury.gov/system/files/136/Paycheck‐Protection‐Program‐ Application‐3‐30‐2020‐v3.pdf We do know that certain documents will be required to apply, including: Payroll tax filings reported to the IRS State income, payroll, and unemployment insurance filings Documentation verifying average monthly payroll amounts from prior periods Documentation verifying payroll costs, mortgage interest, rent and utility payments you expect to incur over the 2 month period after you receive funding Economic Injury Disaster Loan (EIDL) A low‐interest, fixed rate loan that can provide up to $2 million in assistance for small businesses that can be used to pay immediate expenses during an emergency Not currently available The EIDL Emergency Advance is like a doorway to the bigger EIDL 2.75% interest rate for nonprofits, 3.75% interest rate for businesses with 500 or fewer employees Loans can be based solely on credit score. https://www.sba.gov/funding‐programs/disaster‐assistance Application for when available: https://www.sba.gov/disaster/apply‐for‐disaster‐ loan/pdfs/Business%20Loan%20Application%20(SBA%20Form%205).pdf General Info If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP. You cannot use the funds from PPP and EIDL for the same expenses. Great chart comparing EIDL Emergency Advance and PPP: https://www.councilofnonprofits.org/sites/default/files/documents/cares‐act‐loan‐options‐for‐ nonprofits.pdf Article with information regarding PPP and https://www.armaninollp.com/articles/cares‐act‐ funding‐provisions‐small‐midsized‐businesses/#.XoShjm‐WnBk.email older"2020 Spring Membership Meeting Recorded Video" newer"Priority Bills Update"