May 18, 2020
Dear Non-Profit Executives & Colleagues In Service,
VISIT HERE TO DOWNLOAD PPP LOAN FORGIVENESS APPLICATION!
Your non-profit is expected to complete the application and submit it to your lender, who will ultimately be responsible for assessing forgiveness. The application requires that charities submit the forgiveness calculation form and an additional schedule. The process can be completed electronically. Notably, the form asks whether borrowers received a loan in excess of $2 million. Not only did the government indicate its plans to audit all loans over $2 million, but also charities receiving those loans will be required to show the money was necessary to keep operations running and they had limited access to other sources of liquidity.
The 11-page application document contains measures that will benefit charities, including an option that lets nonprofits calculate payroll costs using an “alternative” eight-week covered period that aligns with their regular payroll cycles. It also includes an exemption from the loan forgiveness reduction for borrowers who have made “a good-faith, written offer to rehire workers that was declined.”Charities will be able to count any payroll and eligible non-payroll expenses incurred — but not paid — during the covered period, as long as they are paid by the next regular payroll or billing date. There had been concerns that only expenses that were paid during the covered period would be allowed to count toward forgiveness. The agencies did not reduce a requirement that 75% of the borrowed funds be used for payroll. The stipulation was not written into in the language of the coronavirus stimulus package that created the $660 billion lending program. The SBA and Treasury added it in regulations implementing the program.The government said more guidance is forthcoming to assist both nonprofits and their lenders as they begin the process. VISIT HERE TO READ ENTIRE ARTICLE
Inside Charity is pleased to report that over 600 comments and questions have been recorded at Inside Charity by nonprofit executives, staff, board members, ministry leaders and volunteers over the past ten days. We grateful to everyone who has participated and want to encourage as many as people as possible to continue to share their experiences. Your written comments and contributions have helped your colleagues navigate this process.
We are all in the throes of the global pandemic. Charities everywhere are feeling the effects of isolation measures, business shutdowns, travel bans, and markets crashing. InsideCharity is here to make sure receive the information you require to navigate these unprecedented times. We’re in direct contact with the Small Busi-ness Association (S.B.A) and In-ternal Re-venue Service (I.R.S) to provide you real-time updates you need to access CARE Act funding as soon as possible.
VISIT HERE TO DOWNLOAD APPLICATION
We look forward to hearing from you. Simply reply to this email or subscribe above to ensure you receive CARES Act Updates every time the Federal Government makes them available.
Warmly,
James P. LaRose, CNE, CDE, CNC
Senior Editor