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SBA Nonprofit Funding Is Still Available is Inside Charity’s response to the thousands of charities who may not be aware that there are still millions of dollars available to 501c3 organizations.
We all recognize a feeling of comfort and familiarity as the nation opens back up for business. Recovery from the pandemic is underway; but there are many nonprofits that are still struggling. During these very hot Summer months, it is a great time to take advantage of recovery programs. If you are already in a good place and you are up and running, this is an ideal time to prepare for any disaster that may come our way. The global pandemic has taught us all that anything is possible, and it is wise to be prepared as best as you can.
The American Rescue Plan was made into law with the intent of helping all Americans. For a simplified breakdown of how the Plan may assist you, the White House has created a website that simply defines it for you (The White House American Rescue Plan). The focus of the SBA is to provide access to the portions of the Plan that directly assist charities across the Nation.
SBA Nonprofit Funding Is Still Available
Many changes have occurred in the various COVID relief programs over the past year and some programs have expired. Please read below to see what is currently available:
COVID-19 Economic Injury Disaster Loan (EIDL) – applications accepted through Dec. 31, 2021 (or until funds are exhausted, whichever occurs first).
This SBA direct loan program provides funding to nonprofit organizations currently experiencing a temporary loss of revenue related to COVID-19. LOANS CAN NOW BE RECEIVED IN THE AMOUNT OF $500,000 (existing loans can also be increased up to $500,000.) Unlike the PPP, EIDLs cannot be forgiven and are to be fully repaid. Also, EIDLs are intended to be used for general working capital purposes in order to pay expenses that you would have ordinarily been able to pay had the pandemic not occurred. Nonprofit borrowers get a long term of 30 years to repay the loan with a fixed low interest rate of 2.75%. businesses.
Applicants for the EIDL may be eligible to receive funding from SBA that does not need to be repaid. These “advances” are like grants, but without the typical requirements that come with a U.S. government grant. Last year, Congress appropriated $20 billion in funding for the EIDL Advance program and all of those funds were disbursed at up to $10,000 per business/non-profit organization to applicants for the EIDL program. You did not have to be approved for nor accept an EIDL loan offer in order to receive the Advance. Since that program expired, Congress funded the Targeted EIDL Advance program wherein SBA is ‘targeting’ potential eligible entities who did not receive the full $10,000. last year thus offering them the opportunity to apply for this round of funding. The targeted EIDL advance is for amounts up to $10,000, the business/non-profit must substantiate at least a 30% loss of revenue in 2020 in comparison to 2019, and it must be located in a low-income community. If qualified under Targeted EIDL Advance, an applicant may apply for and receive an additional $5,000 under the Supplemental Targeted EIDL Advance program, if eligible.
Shuttered Venue Operators Grant – still accepting applications
The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance. Eligible applicants include live music venues, entertainment venues, movie theatres, and others, subject to restrictions. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. A $2 billion component is reserved for eligible applications with up to 50 full-time employees.
A Paycheck Protection Program borrower may apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used for authorized purposes within the allowable timeframe. Borrowers can apply for forgiveness directly with their lender any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
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