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CARES Act Nonprofit Application Form IS NOW ONLINE
CARES Act Nonprofit Application Form IS NOW ONLINE
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April 2, 2020

Nonprofit Paycheck Protection Program (PPP) Application

Nonprofit Paycheck Protection Program Application Link is now online. The CARES Act Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to nonprofits to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone. The loan amounts will be forgiven as long as: 1) The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and 2) Employee and compensation levels are maintained.

The Paycheck Protection Program provides nonprofits with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. VISIT HERE TO DOWNLOAD SAMPLE APPLICATION FROM THE TREASURY.GOV WEBSITE

Nonprofit Paycheck Protection Program Application – The Specifics

Fully Forgiven

Funds are provided in the form of loans that will be fully forgiven when 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.

Must Keep Employees on the Payroll—or Rehire Quickly

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.

Nonprofits Are Eligible

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.

When to Apply

Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.

How to Apply

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.

CLICK HERE FOR THE APPLICATION

READ DETAILED PPP FAQ

Note

The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.

Nonprofit Paycheck Protection Program Application Link was adapted from the Small Business Administration website.

Nonprofit Paycheck Protection Program Application Link was first posted at INSIDE CHARITY

INSIDE CHARITY content and comments are for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing on this site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.

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198 Comments

  1. Ronald Di Pietro says:

    Does the Paycheck Protection Program application have to be printed and mailed, or can it be completed online? Thank you, RD

    • Jimmy LaRose says:

      Ronald, our understanding, at this time, is that you fill out the application by hand and then take it to your FDIC Insured Bank, Credit Union or Qualified Lender.

      The key here is…

      …WHAT LENDING INSTITUTION WITH WHOM YOU HAVE A RELATIONSHIP?

      Warmly, JImmy

  2. Ian Ruskin says:

    How do I find a list of participating institutions?
    Thanks
    Ian

    • Jimmy LaRose says:

      Ian,

      If you mean “lending institutions” all FDIC insured lenders are eligible. This does not mean they’re going to participate in this actual “loan product” offering (however…WHY WOULDN’T THEY?”)

  3. Ian Ruskin says:

    Thanks, Jimmy. So far my personal bank, USAA, say no because they only handle individual clients, and SAG/AFTRA Credit Union say no just because. I am hoping that Amalgamated Bank of New York, which has my business accounts, will say yes. But is there a list somewhere of lenders who are part of the program?

    • Jimmy LaRose says:

      Ian, you’re a good guy. I look forward to sorting this out with you. Can you give me at ring after 11am EST tomorrow at 803-477-6242. (By the way pal, I’m a fellow New Yorker!)

      We got this.

      • Philip Dix says:

        Many of our employees are teachers who are not paid June-Aug. This means we cannot show that we maintained employment level in the 8 weeks after loan origination (unless the loan doesn’t originate until early Sept). Are we excluded from claiming forgiveness for these employees?

    • Kristi says:

      Our NYC non-profit does business banking with Amalgamated. They said they are not participating at this time. I just sent a LinkedIn message to the President/CEO asking that they reconsider. Most lenders I see are requiring you have a business account with them. Please do share any info you have on possibilities!

      • Jimmy LaRose says:

        Kristi,

        Couple things. We met with two lenders this week who indicated they would not be taking on any new business customers who’s purpose is to apply for PPP Loans. Second, though we are not recommending any particular lender I thought you might find it interesting that Kabbage has indicated that they are processing PPP Loan Applications:

        https://www.kabbage.com/paycheck-protection-program-loans/

        • david says:

          Hi Jimmy, I tried to apply with Kabbage but they ask what percent of the nonprofit the director owns. I couldn’t put 0% in. Thoughts?

          • Nancy says:

            I have the same problem with Bank of America’s online application. Also, for business types, BofA only offers C or S corp, no nonprofit option.

        • Lisa Fiorelli says:

          Thank you for this post. We are a non profit who uses only independent contractors (1099s) so we have no “payroll”. Are we eligible?

          • Jimmy LaRose says:

            Lisa,

            This is a great question that we think we may have figured it our (but are not completely sure). We know that the PPP Loan amount is going to be calculated based on a nonprofit’s Payroll Records. We also know that the actual individual independent contractor can apply for relief on April 10. We are of the opinion that because independent contractors are repeatedly mentioned that some nonprofits may have perceived that they can request a loan amount that includes both payroll AND independent contractor payments. WE WILL FIND OUT FOR SURE WHEN THE LENDERS KNOW MORE. We have an unconfirmed hunch that the nonprofit’s loan amount will be calculated based on actual payroll ONLY and NOT include monies paid to independent contracts. Our reasoning is based in part on:

            #1 CARES Act Bill says loan amounts will be calculated based on last months payroll multiplied by 2.5
            #2 PPP Application asks what was the amount of your payroll last month
            #3 Financial Lenders are asking for your payroll register and your 940 & 941 payroll tax statements

      • Sarah D says:

        I also bank with Amalgamated and it seems that if they don’t get on board I will not be able to get the loan, which seems unreal. What a mess!

        • Elon says:

          You can apply at any lender that is doing the PPP loan, and will accept people who are not pre-existing customers. There are many of those lenders. Try Sunwest Bank. You can apply right online at their website. No, I don’t work for or get paid by Sunwest.

  4. Ian Ruskin says:

    Thank you. Will do!

    Best
    Ian

  5. Richard Loyd says:

    How does a nonprofit (church) fill out the owner portion of the application and who initials the attestations? We don’t have owners, just officers of the corporation. Any information on whether ministers can be included in the average monthly payroll, since they are treated as self-employed for tax purposes?

    • Richard Loyd says:

      I guess they’re treated as self-employed for payroll taxes, but we do create a W-2. However, we send the required pension and medical insurance payments to the national church’s Board of Pensions, rather than processing that through payroll, so it doesn’t show on the W-2.

    • Jimmy LaRose says:

      Dear Richard,

      Great question. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.

      Regarding self-employed ministry workers, our understanding is that if you file as a sole proprietor you can apply for PPP April 3. Furthermore, our understanding is if you file a regular tax return with independent contractor income you can apply for PPP on April 10.

    • Nancy says:

      I look forward to the answer to this as well.

  6. James Goins says:

    This is great but most banks are closed in my area other than online. How does one ‘go to the bank?’

    • Jimmy LaRose says:

      James,

      Couple of things. Our experience has been that banks are not closed but rather are limiting staff in branches. If your financial institution is an SBA 7(a) approved lender I would locate their phone number and give them a call. On another note, we are not endorsing/recommending lenders but I thought you might find it interesting that Kabbage has indicated that they are processing PPP Loan Applications:

      https://www.kabbage.com/paycheck-protection-program-loans/

    • Amy Shafer says:

      Hi there.

      We are a nonprofit business with more than one-third of our revenue coming from legal gambling (raffles) so we are disqualified for the SBA loan. Does that also disqualify us for the ppp loan?

      Thanks for your help,

      Amy

      • Jimmy LaRose says:

        Amy,

        Our understanding (though not confirmed) is that your organization may still be eligible if it is a 501(c)3 or 501(c)19. Nothing on the application forms are requesting information regarding your different income streams.

  7. In reviewing the Paycheck Protection Program application, it asks for about Applicant Ownership, specifically to list all owners of Applicant with greater than 20% ownership stakes. As a 501 (c) 3 organization, we don’t have owners. We have a board of trustees, which include 5 officers (president and 4 VPs). Who should be listed in this section of the application? Will just the president suffice, or do we include all 4 VPs?
    Thanks for your guidance, JR

    • Jimmy LaRose says:

      Dear Jeri,

      Great question. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.

      • Jonathan H. Lewis says:

        I have not found an “official” application for Paycheck Protection Program Loan (I have only found the sample on SBA website). Can you help? We are a small charitable nonprofit.

      • Davis says:

        I left the % ownership blank and the form was returned for that “error”. It seems at least with some online forms a % of wnership must be entered despite a nonprofit having no owner. What is the suggested course of action.
        Thank you

        • Jimmy LaRose says:

          Davis,

          We’ve had one nonprofit let us know that their lender required them to provide each board member’s name and social security number as the group of “owners” for their charity.

          • Marquita Robertson says:

            I run a nonprofit, applied, was approved and funded today. We only listed the Executive Director’s name and as 100% ownership per our banks understanding of how to complete that portion.

          • Jimmy LaRose says:

            Marquita,

            CONGRATULATIONS ON RECEIVING PPP LOAN FUNDS. Great news for all our readers. It really seems like application success is dependent on the quality of your lending institution.

            You’re great!

            Warmly, Jimmy LaRose

  8. Leslie says:

    Hello! Two questions on the application: Is the time period to calculate the payroll FY19 or 12 months looking back from the date of application? Do we include PTand FT employees in the # of Jobs on the application?

    • Jimmy LaRose says:

      Leslie,

      Our understanding (not yet confirmed) is that you place last months payroll amount on the SBA PPP Loan Application. In our case we included full time and part time employees and counted each of them as jobs.

      However, we found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions regarding payroll amounts, dates and number of employees.

  9. Mike Kelley says:

    Are there any guidelines on requirements for religious organizations to follow anti discrimination guidelines if accepting the loan?

    • Jimmy LaRose says:

      Mike,

      The law, regarding hiring/firing by Faith-Based Institutions and Churches of employees, was established in 1972 and codified in 1987.

      WASHINGTON – JUNE 25, 1987 – In a ruling that could affect thousands of employees of church-run hospitals, schools and nursing homes, the Supreme Court said Wednesday that a nonprofit business affiliated with a church may hire and fire workers for religious reasons. In this clash between the religious rights of employees and the religious requirements of a church, the justices sided unanimously with the churches, concluding that they had the power to decide who would work in their enterprises.

      The ruling upheld a 1972 exemption to the federal civil rights laws in which Congress said that “a religious corporation, association, education institution or society” may not be charged with discrimination based on religion.

    • Jimmy LaRose says:

      Mike,

      Here’s a new resources that just came out this morning about Faith-Based Organizations:

      https://www.sba.gov/sites/default/files/2020-04/SBA%20Faith-Based%20FAQ%20Final.pdf

  10. Tom Akin says:

    Does this apply to Clubs 501c7 organizations?
    Or only 501c 3 and maybe 501c19?

    • Tim Ivory says:

      Jimmy, Can you please answer this question?

    • Jimmy LaRose says:

      Tom,

      Our understanding is that this relief package applies to 501(c)3 and some 501(c)19. The broader term 501c is used at times which could cause confusion since a 501(c)7 falls within that category. Though we are not sure we think it is likely that 501(c)7 organizations may not be eligible.

      • Dee says:

        Hi Jimmy,
        My prganization is a 501 c (4) and it is increasingly difficult to locate information on eligibility for the PPP in our case. Do you have any insights into this for us?

        • Jimmy LaRose says:

          Dee,

          The IRS describes 501(c)(4) organizations as a social welfare group and can engage in more advocacy and lobbying. Furthermore, an “action” organization also generally qualifies as a 501(c)(4) organization.

          Dee, I wonder if the writers of the CARES Act deemed 501(c)4 organizations as “non-essential”

          We have only seen specific language for (c)3 and (c)19.

      • Bob Kozik says:

        501(c)(7) organizations are eligible to participate in the 7a program. An SBA legal group confirmed that the are eligible for PPP.

        • Jimmy LaRose says:

          Thanks for the great update Bob

          • Robert M. Kozik says:

            Our golf club (501(c)(7)) received its funding today under the PPP.

          • Jimmy LaRose says:

            Wow Robert,

            That’s great news. CONGRATULATIONS! Your positive experience defies the conventional wisdom about 501c7 eligibility. We’re very happy for you.

            Warmly, Jimmy

          • Dick Robinson says:

            Hello Jimmy, I’m new to this site and assume you are the thread’s administrator. A few minutes ago I asked the a question to Bob Kozik (along with Paul Cayard for the same organization) and thought I’d ask the same of you in case you have some information through your monitoring of all the posters. Here’s what I asked: “Hello Bob, This thread and your comments are very interesting. I am a member of a large Yacht Club (2,400 members / over 100 employees) here in San Francisco that is organized as a 501(c)(7). We certainly would like to apply for the next round of PPP as were are maintaining full payments to staff and our ground lease throughout the California “lockdown”. However, we have assumed that a 501(c)(7) is ineligible for PPP even though the CARES act and the SBA definitions do not specifically state that a 501(c)(7) is ineligible. Your comment here (and below regarding the PPP success of your Golf Club), raises some hope that our Club might qualify in the next round. Would you kindly offer some specifics on how this was done at your end and where there is some documentation that indicates a 501(c)(7) could be PPP eligible. I would greatly appreciate it! Thank you!”
            Any information or lead you could provide (in case Bob Krozik doesn’t receive a notification of the question) would be very much appreciated. Thank you!

        • Bob,

          Thanks for the update. I represent a 501(c)(5) that is waiting for an eligibility determination from SBA. Did SBA indicate they were going to be issuing additional guidance on application of PPP to other 501(c) entities?

        • Matthew Kireker says:

          Greetings, Bob: Thank you for this news; I’m hoping to confirm with the SBA legal group the eligibility status for the Paycheck Protection Program of a 501(c)(7) organization. Can you provide contact info and name for this group? Thank you, again.

          • Robert M. Kozik says:

            I had the President of a very large SBA lender and his team reach out to the SBA. They handled the details.

          • Eric Fischer says:

            Agreed. Any contract information would be helpful. All public guidance indicates that 501(c)(7) organizations are not eligible.

          • Patrick Bailey says:

            I am also trying to find confirmation that 501c7 groups are eligible. Did you hear any details…specifically where this is spelled out, etc.?

        • Charles Neuhauser says:

          Hi! What’s the “7a program”? Thanks

        • Charles Neuhauser says:

          Never mind; found it.

        • Patrick Bailey says:

          I am also trying to find confirmation that 501c7 groups are eligible. Did you hear any details…specifically where this is spelled out, etc.?

          • Robert M. Kozik says:

            The PPP follows the eligibility requirements of the SBA 7a program. Private clubs and businesses that limit the number of members for reasons other than capacity are eligible. Our Club has no such limitation and is therefore eligible.

            There seems to be a distinction between 501(c)(3) non-profit businesses and other tax exempt businesses. That is why the new law had to specifically include 501(c)(3)’s.

        • Paul Cayard says:

          Hi Bob, I run a 501c7 in California. Can you give me the name of the SBA legal group you dealt with? Thank you.

        • Dick Robinson says:

          Hello Bob, This thread and your comments are very interesting. I am a member of a large Yacht Club (2,400 members / over 100 employees) here in San Francisco that is organized as a 501(c)(7). We certainly would like to apply for the next round of PPP as were are maintaining full payments to staff and our ground lease throughout the California “lockdown”. However, we have assumed that a 501(c)(7) is ineligible for PPP even though the CARES act and the SBA definitions do not specifically state that a 501(c)(7) is ineligible. Your comment here (and below regarding the PPP success of your Golf Club), raises some hope that our Club might qualify in the next round. Would you kindly offer some specifics on how this was done at your end and where there is some documentation that indicates a 501(c)(7) could be PPP eligible. I would greatly appreciate it! Thank you!

          • Bob Kozik says:

            The most important part of the process is working with an experienced SBA lender that has been in this business in a big way and has access to senior people in the SBA. I used Radius Bank in Chicago. Radius is a Boston based bank with their SBA group located in Chicago.

            The PPP is part of the SBA 7a program. A not for profit business is not eligible for a 7a loan. The SBA seems interpret this to mean businesses that are not operating to make money (i.e. 501(c)(3)).

            Private clubs and businesses which limit the number of memberships for reasons other than capacity are also ineligible for the 7a program. So if you private club doesn’t limit memberships in this way, you are eligible for the 7a program.

            Radius Bank confirmed that they had made 7a loans to private clubs and confirmed that they are eligible for the PPP with the SBA legal staff.

            Our application clearly indicated that we were a 501(c)(7) entity.

          • Jimmy LaRose says:

            Thank you Bob. We understand that there’s conflicting information being shared on several fronts. LET ME ASSURE YOU AND OUR READERS THAT THE CARES ACT HAS SEVEN PAGES OF PROVISIONS MAKING CHARITIES ELIGIBLE FOR PPP.

            We’ve had hundreds of nonprofits receive both PPP and EIDL monies.

        • Dick Robinson says:

          Bob, thank you very much for your helpful reply!

        • Cassie Barkett says:

          Hi Mr. Kozik, can you elaborate on your confirmation regarding 501c7 eligibility (who in the legal dpt at the SBA? ) and also share what golf club was successful. I am currently the president of my club in Tulsa, OK. Any information is much appreciated.

          • Bob Kozik says:

            Our Bank contacted the SBA legal staff.
            It took us 10 calendar days from application submissions to approval and 10 calendar days to get funding(which occurred 2 days ago). The application has to be uploaded in a system called E-Tran and the lenders say it is a very slow process. After approval, the local bank was backed up with underwriting and document preparation.

            At the top of the application we checked “other” for entity type.

            Our club is a private member owned golf club in South Florida. I can’t give you the name for privacy issues.

          • Paul says:

            Just wanted to comment on this thread – although the lender does make certain inquiries and may deny a borrower because they do not (in the lender’s opinion) qualify for the PPP, the CARES Act and the SBA’s Interim Rule (and FAQs) make it clear that it is the borrower that is responsible for certifying that they qualify for a PPP loan. Thus, one cannot assume just because a borrower disclosed a certain status and still got the loan, that means the borrower qualifies. I can’t tell you the number of loans I’ve seen paid back by various organizations during the past week because of this misunderstanding (especially considering the SBA is allowing borrower’s to return ineligible funds by May 7 with no questions asked).

            As to the comment that the PPP “follows the eligibility requirements of the SBA 7(A) program” – that is correct except where the CARES Act specifically provides for an exception – and the very first enumerated ineligible business in the relevant SBA Regulations (prior to modification by the CARES ACT) is an entity organized as a NON-PROFIT. Thus, ANY entity organized as a non-profit is (absent modification by the CARES Act) ineligible for a PPP loan. Thus, the prohibition against businesses that “restrict patronage” are applicable to FOR-PROFIT organizations that restrict patronage (e.g. a for-profit men’s only health club). The CARES Act modified the ineligibility rules for non-profit organizations solely with respect to IRC Sec. 501(c)(3) and IRC Sec. 501(c)(19) organizations. No other non-profit organization is eligible for a PPP loan.

            Thus, although some IRC Sec. 501(c)(7)’s organizations may have managed to get a PPP loan (even with the assistance of an attorney or lender who didn’t or should have known better) I would encourage people to do their own research before embarking an expedition that at best will require them to return the funds and at worse will result in penalties. Note that PGA of America has been actively encouraging its members to write to Congress about the ineligibility of IRC Sec. 501(c)(7) organizations for the PPP and you can find their official statement at https://www.pga.org/coronavirus-resources/updates-from-washington/assistance-for-private-clubs . Note the sentence in the PGA’s statement, “….27 of 29 501(c) organizations were excluded from eligibility for Payroll Protection Loans….including 501(c)(7) clubs.”

            Also, there is an article this morning in the WSJ discussing how IRC Sec. 501(c)(7) organizations (among others) do not qualify and that Congress is possibility considering added them to the PPP in the next stimulus bill.

            It probably goes without saying, but the fact that the PGA and Congress are discussing making IRC Sec. 501(c)(7) organizations eligible for PPP loans necessarily means they are…..currently ineligible.

          • Gabe Lowe says:

            Dear Paul,

            We enjoyed your findings and view them as sound. It is been our sense since the beginning that 501c3 and 501c19 may be the only nonprofits that are eligible.

            Thanks for a well written and thorough post.

            Warmly, Jimmy LaRose

      • Rob says:

        Jimmy, I have a non profit 501 c 8 that leases a golf course and operates it as a for profit. They file a 990 for the non profit and a 990-T for the golf course and pay income taxes…. They applied for PPP and their bank felt they didn’t fit. Since they pay taxes, do they not qualify? An FAQ from a CPA firm said that a subsidiary can qualify even if their parent cannot. I think the fact that they pay taxes, puts them in an eligible group.

        What do you think?

        Rob

  11. Suzanne Kho says:

    As a nonprofit, do we leave the “applicant ownership” section and questions 5 through 7 (also pertaining to ownership) blank?

    • Jimmy LaRose says:

      Suzanne,

      Great question. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.

      • Rebecca says:

        For the Owners section, I understand that as a nonprofit you left that blank, but did you submit drivers licenses for anyone and, if so, who? For signatures I assume it would be the Executive Director (employee) and President of the Trustees (governing board) and it would be relatively easy to submit divers licenses for the two of them?

        • Jimmy LaRose says:

          Rebecca, here’s an update. We found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they differentiate between for-profit and nonprofits with custom applications that make more sense.

    • Jimmy LaRose says:

      Suzzane, here’s an update. We found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they differentiate between for-profit and nonprofits with custom applications that make more sense.

  12. Micheal says:

    Can you give direction on how to list an “Owner” for a non-profit that does not have an “owner” on the PPP application?

    • Jimmy LaRose says:

      Mr. Pardue,

      Great question. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.

    • Jimmy LaRose says:

      Micheal, here’s an update. We found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they differentiate between for-profit and nonprofits with custom applications that make more sense.

  13. Kristi Towey says:

    Our local bank (although an existing lender with SBA) is not participating. All other participating banks I’ve looked into require that you have a business account with them on or before February 15th. Any suggestions?

  14. How do nonprofits complete the table in app asking for all owners with 20% share or greater? Also how do we sign in the two spots: authorized rep and owner. I assume CEO is authorized rep. Do I sign as owner too or do we leave that blank since we leave table of owners blank?

    • Jimmy LaRose says:

      Kimberly,

      Couple of things here. We found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they differentiate between for-profit and nonprofits with custom applications that make more sense.

      Regarding the original SBA PPP Loan application here’s a few thoughts. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. We completed the loan application, left many items blank, forwarded it onto our lender and are waiting for further instructions.

      • Gayla Eagle says:

        I have same question as many about the “ownership” section of the PPP application. My lender said to leave it blank.

        • Jimmy LaRose says:

          Gayla,

          First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.

          However, since some of the actual financial lenders are creating their own online application forms THEY MAY correct this and distinguish for-profit applications from nonprofit applications (HOPEFULLY)

  15. Vickery says:

    We are a 10yr old small 501c3 with no paid employees – a board of 8 governs our org. – we serve men women and children with cancer. We operate on a small budget and main fundraiser will be cancelled this year. Just curious if there is any assistance for non profits such as ours, without paid employees. Just curious as we want to continue to serve those in need of possible.

    Thank you in advance.

    • Jimmy LaRose says:

      Vickery,

      The Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDLs) may be your first line of support.

      https://www.sba.gov/funding-programs/disaster-assistance

      These loans aren’t new. They’ve always been available in the event of disaster. However, according to Alex Contreras, Director of Preparedness, Communication, & Coordination at the Office of Disaster Assistance for the SBA, this is the first time a virus or pandemic event has been defined as a disaster. Because of this declaration, businesses in every state and territory are now eligible to apply for Economic Injury Disaster loans.

      On another note, we would recommend contacting your local bank about your eligibility for Paycheck Protection Program Loans.

  16. Odomitchi Anikpo says:

    This is a new question — I’m the executive director of a 501c3 non profit public charity. I’m in the process of rehiring a vacant independant contractor position. The position is opened since mid-january. Would it qualify as eligible staff cost? Thanks

    • Jimmy LaRose says:

      This is a great question that we think we may have figured it our (but are not completely sure). We know that the PPP Loan amount is going to be calculated based on a nonprofit’s Payroll Records. We also know that the actual individual independent contractor can apply for relief on April 10. We are of the opinion that because independent contractors are repeatedly mentioned that some nonprofits may have perceived that they can request a loan amount that includes both payroll AND independent contractor payments. WE WILL FIND OUT FOR SURE WHEN THE LENDERS KNOW MORE. We have an unconfirmed hunch that the nonprofit’s loan amount will be calculated based on actual payroll ONLY and NOT include monies paid to independent contracts. Our reasoning is based in part on:

      #1 CARES Act Bill says loan amounts will be calculated based on last months payroll multiplied by 2.5
      #2 PPP Application asks what was the amount of your payroll last month
      #3 Financial Lenders are asking for your payroll register and your 940 & 941 payroll tax statements

  17. Kevin Nishida says:

    Hi Jimmy, When completing your nonprofit PPP application, did you also leave the signature of owner of applicant business blank (at the end of the application) as well and just sign as an authorized representative?

    • Nancy says:

      Kevin – Curious on whether you’ve gotten an answer to your question. We have the same question. Thanks!

      • Jimmy LaRose says:

        Great question Nancy. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.

        However, since some of the actual financial lenders are creating their own online application forms THEY MAY correct this and distinguish for-profit applications from nonprofit applications (HOPEFULLY)

    • I have the same question as Kevin.

    • Jimmy LaRose says:

      Great question Kevin. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.

      However, since some of the actual financial lenders are creating their own online application forms THEY MAY correct this and distinguish for-profit applications from nonprofit applications (HOPEFULLY)

  18. Carroll says:

    Some Confusion on 1099 contract workers. Our church employees 2 FT and 5 PT employees. Plus 7 1099 contractors. I’m getting mixed signals about whether or not to include 1099 workers in my payroll calculations. Thoughts?

    • Jimmy LaRose says:

      Carroll,

      This is a great question that we think we may have figured it our (but are not completely sure). We know that the PPP Loan amount is going to be calculated based on a nonprofit’s Payroll Records. We also know that the actual individual independent contractor can apply for relief on April 10. We are of the opinion that because independent contractors are repeatedly mentioned that some nonprofits may have perceived that they can request a loan amount that includes both payroll AND independent contractor payments. WE WILL FIND OUT FOR SURE WHEN THE LENDERS KNOW MORE. We have an unconfirmed hunch that the nonprofit’s loan amount will be calculated based on actual payroll ONLY and NOT include monies paid to independent contracts. Our reasoning is based in part on:

      #1 CARES Act Bill says loan amounts will be calculated based on last months payroll multiplied by 2.5
      #2 PPP Application asks what was the amount of your payroll last month
      #3 Financial Lenders are asking for your payroll register and your 940 & 941 payroll tax statements

  19. Ann Rosato says:

    What does it mean in the application when it asks for Number of Jobs? Is that number of employees?
    Thank you!
    Ann

    • Jimmy LaRose says:

      Ann,

      When we completed the earlier application provided by SBA we decided that the terms “jobs” and “employees” were synonymous. On another note, we found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they they clarify the jobs vs employees issue and differentiate between for-profit and nonprofits with custom applications that make more sense.

  20. Frank Kearns says:

    It is my understanding that there will be a different application for churches and religious organization that will be available at later date. Do you know if this is true or do Churches use the same SBA PPP application?

    • Jimmy LaRose says:

      Frank,

      I have not heard about a different application for churches and religious organizations at a later date (my hunch is that there won’t be. However this new brief for faith-based organizations was released this morning:

      https://www.sba.gov/sites/default/files/2020-04/SBA%20Faith-Based%20FAQ%20Final.pdf

      On another note, we found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they they differentiate between for-profits, nonprofits (and faith-based organizations if necessary) with custom applications that make more sense.

  21. Rajen says:

    Hi Jimmy, you are doing great work…
    On page one of PPP application, applicant has to enter average monthly payroll. Below that there is an option to enter the purpose of the loan e.g. rent , utilities.

    Should I include Monthly Rent & utility expense In Average monthly payroll amount?
    Thanks!

    • Jimmy LaRose says:

      Rajen,

      MYSTIFYING QUESTION. Here’s what we did since rent and utilities are not payroll…WE DID NOT include rent or utilities in the average monthly payroll on the original form. However, we found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have clarifying questions and requirements.

  22. Jonathan Belinski says:

    My wife and I are 65/35 split LLC partnership.We both work full time for our company. We file our LLC taxes and then file jointly for income derived from the LLC in a joint account. As “owners” its seems we would qualify under “self employed” on the March 10th PPP since the IRS defines LLC Partnerships as “self employed”. All of our income is 1099 and we would both meet the $100k max even under the split. Additionally we have one qualifying employee (W-2 who) already exceeds the payroll cap at $100k. Ultimately our business will be devastated for a long time and we are looking for maximum relief we can get. Can we file all 3 of us? If so would our employee have to go under our LLC utilizing our EIN number and then my wife and I file separately March 10th under our own individual SSN’s? Since so little details provided about the March 10th 1099 PPP we dont know if we need to get all 3 of us in on that one even though only our employee is W2. Do we do separately? Does doing one exclude us from doing the other? Anything else I’m missing we could be eligible for? Thanks so much.

    • Jimmy LaRose says:

      Wow Jonathan! You’re doing a great job. I think you may have asked 72 different questions in a single paragraph!

      So, our limited understanding is that you and your wife would file as independent contractors on April 9th. Regarding your payroll (W-2) our understanding is that you can apply as a corporation on April 3rd. I would move ahead with both W-2 and 1099 applications with your lender and get their advice even though your employee exceeds the $100,000 cap.

  23. Cheryl Gannon says:

    Is a 501(c)(7) non-profit social club eligible? I’ve seen conflicting summaries. Some say non-profits are eligible, as if it’s every section, and some summaries say it’s only 501(c)(3) and (c)(19).

    • Jimmy LaRose says:

      Cheryl,

      Our understanding is that this relief package applies to 501(c)3 and 501(c)19. The broader term 501c is used at times which could cause confusion since a 501(c)7 falls within that category. Though we aren’t sure, we think it is likely that 501(c)7 organizations may not be eligible.

  24. phillip t lam says:

    Hi, I am a 1099 employees can I apply for this? If yes can I used it to pay my car payment, phone bill, credit card[home depot] and tax? Will it fall under loan forgiveness?

    • Jimmy LaRose says:

      Phillip,

      So, our limited understanding is that you will be able to file with your lender on April 9th. Regarding car, phone, credit card, tax, etc. THERE’S NO TELLING UNTIL WE RECEIVE THE SBA APPLICATION FORM FOR INDEPENDENT CONTRACTORS.

      (I think the reason they pushed the IC application until April 9th is because they need that much time to actually put together a FIRST DRAFT OF THE APPLICATION (which then may go through additional iterations.)

  25. James Stevenson says:

    Churches will continue to receive income in the form of offerings during this period albeit at a reduced level. Will current income become part of the calculus for the amount of PPP loan?

  26. dan jiji says:

    Our full-time employees, including the rabbi, are contractors who receive a 1099’s. Would we qualify?

    • Jimmy LaRose says:

      Dear Dan,

      Our understanding is that your nonprofit can apply for immediate assistance at:

      https://www.sba.gov/funding-programs/disaster-assistance

      Regarding your independent contractors, our limited understanding is that THEY will be able to file as individuals on April 9th. Regarding specifics THERE’S NO TELLING UNTIL WE SBA RELEASES THE APPLICATION FORM FOR INDEPENDENT CONTRACTORS. (I think the reason they pushed the IC application until April 9th is because they need that much time to actually put together a FIRST DRAFT OF THE APPLICATION)

  27. Mark Rabin says:

    We are a non profit religious institution but we do not have IRS official recognition as a 501(c)3 organization. Are we still eligible for the loan program?

  28. Pleasant Valley Country Club says:

    What about 501 (c) (7) non-profits? Can we apply?

    • Jimmy LaRose says:

      Dear Pleasant Valley Country Club,

      Our understanding is that this relief package applies to 501(c)3 and 501(c)19. The broader term 501c is used at times which could cause confusion since a 501(c)7 falls within that category. Though we aren’t sure, we think it is likely that 501(c)7 organizations may not be eligible.

  29. TRAVIS DEAN STEINFELDT says:

    I see the Average Monthly Payroll (calculate from 2019) x 2.5=loan and number of jobs I assume is the number of employees on payroll.
    My question is Where you can select payroll/rent/mortgage interest/utilities/other. If you chose more than one loan purpose do you need to show somewhere the amount? would that amount be per month? Is there not a space to provide that?

    • Jimmy LaRose says:

      Great Question Travis,

      First, the only place the original SBA PPP Loan Applications allows you to show a dollar amount is in the field – PAYROLL AMOUNT. Second, there is no field that allows you to indicate dollar amounts for utilities, rent/mortgage. In our case we put our payroll amount in the field payroll amount and then indicated that the loan would be used for:

      Payroll
      Utilities
      Rent/Mortgage

      We found out yesterday (March 3rd) that various lenders are creating their own applications for PPP loans which may vary and have clarifying questions and additional requirements.

  30. RUAN NGUYEN says:

    where can you submit once you done fill it out the application for paycheck protection program. ca someone let me know. thanks

  31. John says:

    Are they using personal credit scores as a factor in approving the ppp loan? I’ve seen nothing about credit worthiness for some of us with shaky credit scores.

    • Jimmy LaRose says:

      John,

      We’ve met with two SBA 7(a) approved lenders who have indicated that they will be relying on the corporation’s credit score NOT personal credit scores. These loans do not require a personal guarantee.

      On a side note. BANK OF AMERICA only processed loans for nonprofit customers who had PREVIOUSLY ESTABLISHED credit with BOA (they seem to be the only lender who actually processed loans on April 3rd.)

  32. Kim Andersen says:

    How does a nonprofit apply for the PPP loan if the bank that we use is not offering the loan. Bank OZK.

    • Jimmy LaRose says:

      Kim,

      Great question. Tragically, most approved SBA 7(a) lenders have indicated they would only be providing PPP Loans TO EXISTING CUSTOMERS. (New customers need not apply if they are seeking PPP.)

      Conversely, though we are not endorsing or recommending lenders, I thought you might find it interesting that Kabbage.com has indicated they are processing PPP Loan Applications online. Here’s their website:

      https://www.kabbage.com/paycheck-protection-program-loans/

  33. The law, regarding hiring/firing by Faith-Based Institutions and Churches of employees, was established in 1972 and codified in 1987.

    So if a church signs on the dotted line are they then giving up these rulings Of the past If they agree to the statements of the loan Application when it comes to non-discrimination?

  34. C Riley says:

    Has anyone applied on Kabbage online. It is available there instead of going to a physical bank however there doesn’t seem to be the option to skip the ownership question.

  35. Jimmy LaRose says:

    Mr. Anikpo,

    This is a great question that we think we may have figured it our (but are not completely sure). We know that the PPP Loan amount is going to be calculated based on a nonprofit’s Payroll Records. We also know that the actual individual independent contractor can apply for relief on April 10. We are of the opinion that because independent contractors are repeatedly mentioned that some nonprofits may have perceived that they can request a loan amount that includes both payroll AND independent contractor payments. WE WILL FIND OUT FOR SURE WHEN THE LENDERS KNOW MORE. We have an unconfirmed hunch that the nonprofit’s loan amount will be calculated based on actual payroll ONLY and NOT include monies paid to independent contracts. Our reasoning is based in part on:

    #1 CARES Act Bill says loan amounts will be calculated based on last months payroll multiplied by 2.5
    #2 PPP Application asks what was the amount of your payroll last month
    #3 Financial Lenders are asking for your payroll register and your 940 & 941 payroll tax statements

  36. Suzanne Kho says:

    Hi All –

    I’m seeing a lot of questions that are clearly answered on the PPP fact sheet:
    https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf

    Also here is the link to the application form:
    https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

    Note that it was revised late Thursday night and is different than the earlier sample.

    You’ll see the list of eligible institutions at the top of the application form.

  37. Rita Stern says:

    How would it work if you work for a non profit and their are only two part-time employees who are self employed and pay their own taxes with no benefits

    • Jimmy LaRose says:

      Rita,

      Our limited understanding is that your independent contractors would apply for PPP on April 9th.

      Please contact your local bank/lender to see if your actual corporation is eligible for PPP Loans.

  38. Sherrt says:

    Where do private elementary and high schools stand in this? Thank you

  39. Robin Costa says:

    We are a preschool located in a church. I know we can apply for our school members but can the church include their salaries, pastor, secretary, music director?

  40. Jimmy LaRose says:

    Mr. Rlley,

    Nonprofits like For-Profits are small businesses. Though we have no opinion regarding your comment we’ve seen several charitable organization place their CHAIR PERSON’s NAME as owner to complete the Kabbage.com Application.

  41. Shane Ayres says:

    Hello – I work for a munipical owned critical access hospital. There have been some mixed messages and understanding as to whether we can apply for the PPP loans. My understanding is we are not eligible. Can you confirm this? Thanks

    • Jimmy LaRose says:

      Shane,

      Our understanding of the CARES ACT is that Federal Government has infused billions for State and Local Municipalities. We recommend that you contact the local agency that is presently responsible for overseeing your hospital’s finances to learn more.

  42. Ann Rosato says:

    The biggest issue for non-profits seems to be the ownership field in the PPP application. In the on line form for The Bank Of America, you can not leave that field bank as it won’t allow you to proceed with the application unless you put something in that field and it wouldn’t allow me to put in 0% or N/A. Also, the B of A says that you must submit the application on line. Obviously, this was not meant for non-profits and so, I put in 10% and put in the name and info for the President of The Board of Directors; however, it then did ask for ID info for the Board president (SS#, home address and DOB).
    Anyone have any further info on this?
    Thanks
    Ann

  43. Dana Tanaka says:

    I am filling out the PPP application and I am a non-profit preschool which is governed by a Board of Directors. We are the DBA under the Church. How do I answer the ownership question? What documents do I need to present to get the loan approved. I want to be prepared. Thanks for your help and guidance. I appreciate it!

    • Jimmy LaRose says:

      Dana,

      While addressing the “ownership” issue. We found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they differentiate between for-profit and nonprofits with custom applications that make more sense.

      Regarding the original SBA PPP Loan application you may be dealing with right now here’s a few thoughts. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. We completed the loan application, left many items blank, forwarded it onto our lender and are waiting for further instructions.

      Regarding Documentation:

      Our lender provided a LIST OF DOCUMENTS nonprofits will need to organize:

      Completed PPP Loan Application
      2019 Form 990 Tax Return (2018 if 2019 is not available)
      941 Tax Liability Detail 2019
      941 Tax Liability Detail 2020
      Payroll Register 2019
      Payroll Register 2020
      Statement of Activity (P&L) 2019
      Statement of Activity (P&L) 2020
      Articles of Incorporation
      Utility Bills 2020
      Proof of Employees U.S. Citizenship

  44. Donna Hartmann says:

    The application on our bank’s page doesn’t allow you to skip the % of ownership question. You have to enter an owner and requires information on all owners – it has to total 100%. After long times on hold the bank could not tell me how to get beyond that page. In fact they had no idea of what the app requires. Does the officer applying act as owner and have that put in writing by the Council?

  45. John Gross says:

    Jimmy
    Can you provide insight on why 501c7 organizations are not included and is there a possibility if that may change?
    Thanks
    John

    • Jimmy LaRose says:

      John,

      The IRS says, Social clubs are exempt from federal income tax under IRC 501(a) as organizations described in IRC 501(c)(7) if they are “organized for pleasure, recreation, and other nonprofitable purposes.”

      I wonder if the writers of the CARES Act deemed 501(c)7 organizations as “non-essential”

  46. Beth Stevenson says:

    I applied for the loan through our bank for our non-profit. I left the ownership blank because we don’t have owners- simply board members. I already received a response from the loan processor that we had to fill out the ownership application as if all board members are owners in order for it to go through. I listed all board members and created ownership % that add up to 100%. I had to do it in order for it to be processed.

  47. John Gross says:

    Can you provide insight as to why 501c7 Organizations are excluded and if they may be included if there are additional programs?

    • Jimmy LaRose says:

      John,

      The IRS says, Social clubs are exempt from federal income tax under IRC 501(a) as organizations described in IRC 501(c)(7) if they are “organized for pleasure, recreation, and other nonprofitable purposes.”

      I wonder if the writers of the CARES Act deemed 501(c)7 organizations as “non-essential”

  48. Frank Kearns says:

    What box do i check if we are a Church that is not a 501c3 but operates as one and are part of the Florida Baptist Association that is a 501c3?

  49. Erika says:

    Hello, when completing this application under the “Certifications” tab there is a section to initial that reads, “The funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule; I understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold me legally liable, such as for charges of fraud.”
    As a non-profit, are you initialing this, and assuming personal responsibility? Or is this meant for small businesses and sole proprietors only?

    Thank you for your guidance!

    • Jimmy LaRose says:

      Erika,

      Our understanding is that the parts of the loans that are “forgivable” are payroll, utilities & rent. Our further understanding is that the loan can be used for other bills to keep your doors open that will NOT be forgivable.

      We appreciate the confusion and will continue to clarify as we learn more.

  50. Beth Harsch says:

    If the Board of Directors are on all legal documents with the bank (ED does not sign checks, etc), is the ED able to submit this loan or should it be a board member?

  51. Teresa H. says:

    Can a 501(c)5 apply for the PPP?

  52. Patty says:

    So my business banks at Wells Fargo. Wells Fargo has shut down the process due to meeting the dollar amount in two days. What resource do we have beyond Wells Fargo?

  53. Hello, I have a client that went to a webinar for PPP for the nonprofit. She was informed that if you get state grants that trickle down from the Feds or direct federal grants that reimburse payroll they would have to be excluded from the payroll forgiveness. They would consider it double-dipping and could hurt future grant proposals if you do use both. She said you could request a budget amendment to move these reimbursements into another period (and not the 8 weeks to be forgiven after) to get around it, but you’d have to do budget amendments. Have you heard anything about this?

  54. Robin says:

    Jimmy,

    Are you sure that 501c7s are not eligible? I’m not seeing that explicitly stated any where.

  55. […] have been forced to reimagine program delivery or are seeking to understand the details of the new Nonprofit Payment Protection Program, there is confusion, stress, and anxiety at every […]

  56. steve foss says:

    I am 501(c)3. BofA wants me to fill out a form based on its 940. We are exempt from filing 940. we do submit 941 quarterly but that form doesn’t show the amount that is housing allowance. Since housing is a part of the compensation package how can we make sure that amount is included in the payroll calculations. BofA is all only so no persons to talk too, to explain.

  57. Philip Dix says:

    We’re a 501c3 synagogue with no owners in the usual sense. My lender said I should put my name on the form under Owner and attach a resolution from our board of directors giving me authority to represent the organization. I put 0 in for % ownership.

  58. Donna Kurilla says:

    Some of our employees have been on unemployment for the past 3 weeks but we still have a couple that have been in a full time status. How does that affect using the past month’s salary basis? Can they stay on unemployment?

    • Jimmy LaRose says:

      Donna,

      Our understanding is that during the application process you will be required to supply your most recent payroll register and 940 or 941 form REGARDLESS OF WHO MAY HAVE GONE ON UNEMPLOYMENT DURING THAT PERIOD.

  59. Our church is applying for the PPP Loan. As Treasurer of the Council, I have been asked to sign this application. By signing this application, can I personally be held responsible for paying back this loan. Second, by signing this application, will this affect my credit?

    • Jimmy LaRose says:

      Sherri,

      Our understanding of the CARES Act is that personal guarantee is not required. Our uninformed answer to your question is that you will not be personally held responsible.

  60. […] Inside Charity’s article on How Nonprofits will Receive CARES Act Funding outlines the most relevant questions that nonprofits may have about the SBA Paycheck Protection Program and their eligibility requirements around applying for this funding. Additionally, they have published an article dedicated to walking nonprofits through the Paycheck Protection Program (PPP) Application. […]

  61. Did we ever get clarity re eligibility of 501c7’s for PPP? Or any other relief? Many thanks! [email protected]

    • Jimmy LaRose says:

      Patrick,

      Though on person in this thread indicated that they spoke to an SBA representative that all 501c organizations are eligible. We have not be able to confirm that statement nor do we believe that it is accurate. Our understanding at this time is that 501c7 organizations may not be eligible.

      • Patrick Bailey says:

        Thanks for this. I’m just curious and wonder if you know the answer…Given what I have heard is the intent of the PPP (to get money into the hands of the newly unemployed so they can spend it to keep up the cash flow through our total economy), I wonder why they would exclude virtually any group of people? Seems they would want as much cash sloshing around as is humanly possible??? Any thoughts???

    • Cheryl Gannon says:

      Arnold and Porter has some very good public documents for non-profits. Here is a link to one of them and you can find links to their other documents in this article.
      https://www.arnoldporter.com/en/perspectives/publications/2020/03/analysis-of-cares-act-for-nonprofit

  62. Liz A. says:

    Has anyone seen guidance about board members being SBA employees and whether or not that disqualifies the charity from the PPP loan? I can’t find guidance anywhere.

    • Jimmy LaRose says:

      Liz,

      We have spent considerable time reading the CARES Act bill. It is our limited understanding that because your nonprofit does not have “owners” your charity is eligible for PPP (even if someone on your board is an SBA employee)

  63. Lisa Hatfield says:

    Have you ever found out for sure from the lenders if non-profits have independent contractors only can they get the PPP money?

    • Jimmy LaRose says:

      Dear Lisa,

      It really can be confusing with all the conflicting information being bandied about. We are very certain that the PPP Loan Calculation Amount is determined using W-2 Payroll Employee Documentation ONLY.

      Furthermore, Independent Contracts are able to apply for PPP Loans themselves.

      So our limited understanding of your question is tragically “no.”

      Warmly, Jimmy LaRose

  64. I have a 501c3 Non profit afterschool program. I became a 501c3 in May of last year, so I have not yet filed any taxes. What else can I submit. Does this disqualify my company?

  65. I have a question about the allowable costs. The Act states that the borrower must have incurred and paid the qualifying expenses during the eight weeks following receipt of the loan proceeds. I am looking for clarification on “incurred” and “paid”;for example, if I my loan funded on the 24th, and I have a payroll period that covers two weeks ending on the 1st, will I be forgiven for the entire payroll or just the period after the 24th? Same question would impact utilities and loan interest.

    .

  66. Ann Rosato says:

    I have the same question about the allowable costs…we paid our mortgage on the 1st, but if we get the loan on the 5th can we still use some of that money to pay the interest on the May mortgage payment? Also, what is considered a utility for a business? Trash service? Phone service? internet service?

    Also, if we don;t spend 100% of the money for what it is deemed for, what happens to the remaining amount? Say we spend all but 10,000…do we return that money right away? Do we keep it and pay it back over time with loan payments? I see two different statements on the rules…

    Thank you!

  67. We have a non profit with no employees but volunteers and some part time assistance. We do spend money on arts program. We are running an online festival to replace onsite festival. Did this PPP apply to our situation? Thanks Shekar

  68. Lauren says:

    Can you please help me- I am the director of a nonprofit “moms day out” preschool program through a church. I applied for the ppp in April with the HOPE and INTENT on paying my employees with that money for April and May’s payroll. We are closed during the summer months and I am the only person paid during that time because I’m salary. We were just NOW approved for the ppp loan and I’m worried about being able to use the 75% to cover payroll costs SINCE May is the only month left that we are open. I can use the ppp loan to cover May payroll but unfortunately I was not approved in time to pay them for April. How do I justify paying them for June if we aren’t usually open during that time? And how do I go about paying just myself for the summer months and it not look like my employee number changed???

  69. Cal Stanford says:

    Our 501(c)(7) applied for the PPP and was not approved. We are a homeowner association of a recreational campground property. We have employees to take care of grounds, water system, septics. electrical. The Governor deemed our entity essential. Any thoughts? Thanks.

  70. Gabriel Jiabana says:

    Hi Jimmy, I have nonprofit organization, a 501 (C) 3 for school-based after school program. I am the executive Director and 100% ownership. I use all my personal finds in supporting the organization. Am I qualify for PPP? Please i need an answer.

    • Jimmy LaRose says:

      Good Morning Gabriel,

      Our limited understanding of the answer to your question is yes IF you pay yourself as a W-2 employee. One more note technically a 501c3 cannot be OWNED by anyone. It is overseen by a board of directors whose mandate is determined in the organizational by-laws.

  71. Hi Jimmy,
    I’m a 501(c)3 and I used the 990 postcard. Can I still apply for the PPP.

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