Nonprofit PPP Loan Forgiveness UPDATE reveals new facts regarding the forthcoming PPP Loan forgiveness process. Unfortunately, the probability of actually receiving a PPP Loan has come to an end. The SBA announced today that as a result of an unprecedented crush of applications (and the rapid depletion of CARES Act funding allocated by Congress) that they have CLOSED their application portal and are drastically limiting the amounts of the remaining loans they have left to offer to nonprofits and small businesses. If your nonprofit is among those fortunate enough to have received a loan or loan advance your next major hurdle will be to ensure the amount you receive is actually forgiven.
Here’s what we can confirm so far:
Here’s the single most important task you have to do TODAY:
Secure a bookkeeper that understands all the details of The CARES Act, EIDL and PPP Loan programs. Here at INSIDE CHARITY the company we use re-calibrated our Quick Books to account for all our EIDL and PPP Loan revenues and are allocating, in real-time, the dollars we spend that can be forgiven. You don’t have till next years tax season to straighten this out. YOU ONLY HAVE EIGHT WEEKS. You thought getting the loan was tough. Well, you may be already behind if you’re counting on forgiveness. As the poet so aptly said, “Once more unto the breach, dear friends, once more!”
Your PPP loan may be forgiven if you use the money for:
You may NOT use your PPP loan for:
You want to avoid IMMEDIATE PAYBACK. Any part of your PPP loan that is not forgiven must be paid back, either immediately, in the case of non-permitted use, or in the form of a two-year loan at 1% with a six-month deferment in the case of permitted but not forgivable amounts. An example of a permitted but not forgivable use would be utility costs that push your non-payroll expenses over 25% of the amount forgiven. Another example would be interest on non-mortgage debt in place on Feb. 15, 2020.
You must also adhere to some additional requirements:
As much as is known about the Paycheck Protection Program, there is just as much that is not known. As guidance becomes available and to the extent it answers any of these questions, information will be added to this article.
Here’s the single most important task you have to do TODAY:
Find a bookkeeper or CPA that understands The CARES Act, EIDL and PPP Loan programs and nonprofit finances. Here at INSIDE CHARITY the company we use re-calibrated our Quick Books to account for all our EIDL and PPP Loan revenues and are allocating, in real-time, the dollars we spend that can be forgiven. You don’t have till next years tax season to straighten this out. You thought getting the loan was tough. Well, you don’t have a moment to catch your breath if you actually want forgiveness. As the poet so aptly said, “Once more unto the breach, dear friends, once more!”
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I am president/CEO of Appalachian Affordable Housing, we build homes for very low and low-income and homeless families. We also educate/tutor if needed, computer classes, Home Ownership, Financial, and other. and we also work with 4 different Banks to work with our potential homeowner credit. We finance these homes with no interest, and 30.5 % to 38.5% of their income for home payment.
Our mission is to build safe affordable homes, better lives, stronger families and safer communities through partnerships with people an organizations throughout our city and county bringing individuals together to build affordable homes with those in need. We are Christian ministry that calls on all people regardless of religious preferences or cultural background to make safe and simple, affordable housing a madder of conscience and a action in Cocke County, TN.
Thank you: Ronnie