To our nonprofit partners,
News of federal aid programs is coming quickly, and we hope the money will flow just as quickly. We wanted to highlight two new federal programs that are intended to specifically and immediately help nonprofits. Both programs come from the U.S. Small Business Administration.
Paycheck Protection Program (PPP)
This program is expected to open applications tomorrow, and we recommend applying as soon as possible. A preview of the application appears relatively simple.
Here are the bullet points:
- This is essentially a cash-flow assistance program guaranteed by the federal government
- These are largely “forgivable loans” – which basically means they could turn into grants if you cover eligible expenses (see this accessible Q&A for more details)
- Loans are available to nonprofits with up to 500 employees
- Loans are for up to $10 million
- Loans are designed to cover costs related to payroll, operations, rent, utilities, and interest on debt
- Collateral and personal guarantees are not required
- Loans are available through SBA-qualified lenders (here’s a list of the most active SBA lenders)
Economic Injury Disaster Loans
This program is not traditionally available to nonprofits, but it is now. Here are the bullet points:
- Loans may be up to $2 million, at a favorable rate of 2.75%, and possibly for up to a 30-year term
- Loans are designed to cover the impacts of the pandemic, including on payroll and operating costs
- There’s a new provision that allows nonprofits to draw an advance of $10,000, distributed within 3 days of applying
- The program is available in any state with a disaster declaration, which includes all of the states in IFF’s Midwest territory (Illinois, Iowa, Indiana, Kansas, Michigan, Minnesota, Missouri, Ohio, and Wisconsin).
Many new resources from government and philanthropy — emergency grants, emergency loans, special programs — have popped up to help those impacted by the COVID-19 pandemic. That is great — but it’s a lot to sift through right now. IFF has tried to do some of the sifting for you and has compiled a new list of resources at www.iff.org/covid19.
Communities are resilient because the nonprofits that support them are strong. We know people are relying on you more than ever, and IFF is as committed as ever to serving you during this time.
To that end, we are in the midst of reaching out individually to every one of our borrowers, real estate clients, and other partners to see how we can help. Please stay in touch, and stay safe.