Stimulus Programs Available to Nonprofits During Covid-19

Salaam Friend,

I hope this message finds you well.

I wanted to make sure that you are aware of a recently announced Coronavirus Aid, Relief, and Economic Security (CARES) Act, which allocates $349 billion to help small businesses keep their workers employed during these challenging times. Nonprofits such as yours may also be eligible for these loans.

I’ve included pertinent information in the charts below that explain the programs and eligibility requirements.

In summary, there are 2 options for most nonprofits to obtain a loan or grant:

1. Paycheck Protection Program (PPP): (fact sheet) (application)

2. Emergency Economic Injury Disaster Loans (EIDL): (application)

Of the amount requested in the EIDL loan application, up to $10,000 can be in the form of an Emergency Grant. This advance is paid within 3 days and is forgiven even if the EIDL application is denied.

Be mindful you cannot participate in both programs. You can apply for both PPP and EIDL, then decide what’s a better option once you qualify. For more information, visit the U.S. Department of the Treasury and the Small Business Administration (SBA) website.

Applications open first thing tomorrow, Friday April 3rd.

The applications will be time-stamped and handled on a first-come, first-served basis.

I know that’s not much time, but I recommend you explore your options to benefit from this opportunity as soon as possible.

cares-act-loan-options-for-nonprofits

Respectfully,

Legal Disclaimers

All the information contained in this overview is prepared for general information purposes. This document may serve as a reference guide to assist with your voluntary compliance with federal laws and procedures for churches, mosques and religious organizations. It is not comprehensive and not a sole source of information. The comments contained herein do not constitute a legal opinion, does not create an attorney-client relationship, and should not be regarded as a substitute for legal advice.  This information only applies to federal law and procedures and not to a specific state. The resolution of any particular issue may depend on your specific facts and circumstances. You should not act upon any such information without first seeking qualified professional counsel on your specific matter.

Tax Matters: To the extent this message or any attachment concerns tax matters, it is not intended or written to be used, and cannot be used by a taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under law.