The CARES Act contains two loan options for nonprofit organizations — Paycheck Protection Program (PPP) and Emergency Economic Injury Disaster Loans (EIDL). … Nonprofits and small businesses can apply for BOTH loans. Rules stipulate that PPP money and EIDL money cannot be used for the same things.
Which nonprofits are eligible for PPP?
The Rescue Plan further states that a nonprofit organization (defined in the original CARES Act as a 501(c)(3) organization and exempt from taxation under section 501(a) of the Internal Revenue Code) is eligible to receive a PPP if the organization employs not more than 500 employees per physical location of the …
Are 501c3 organizations eligible for PPP?
The American Rescue Plan Act expanded PPP eligibility to “additional covered nonprofit entities” listed in Section 501(c) of the Internal Revenue Code that employ 300 or fewer employees per physical location and do not derive more than 15% of receipts or devote more than 15% of activities to lobbying.
Is a 501 C 7 eligible for a PPP loan?
The Act expands eligibility for the PPP by including all 501(c) organizations, including 501(c)7 Social Clubs that do not fall under Small Business Administration regulations barring the participation of private clubs that limit their membership for reasons other than capacity.
Are PPP funds still available?
As of 5/31/2021 the SBA has disbursed $800 billion of the $813.5 billion so far appropriated by Congress to this program. As of Round Three, $6 billion, or 2 percent of Round Three PPP funding, remain available to the program.
Is it too late to apply for PPP?
And the deadline to apply for PPP loans is in any case quickly approaching (May 31, 2021). Any companies still looking to access the remaining funds in the program, whether in bankruptcy or not, will therefore need to act quickly.
Do PPP loans have to be repaid?
Borrowers can apply for forgiveness after they have spent all of the loan money they want forgiven. … For PPP loans issued after June 5, 2020, borrowers are given six months to spend the cash. They don’t have to start repaying the loan until 10 months after the spending period ends.
Can a church apply for a PPP loan?
Is a church eligible to receive PPP/EIDL loans? Yes. The United States Small Business Administration (“SBA”) has expressly indicated that faith-based organizations, including houses of worship, are eligible to apply for and receive PPP/EIDL loans.
Is the SBA PPP loan forgivable?
First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement: Employee and compensation levels are maintained. The loan proceeds are spent on payroll costs and other eligible expenses; and.
How do I calculate my PPP loan amount?
You’ll use your gross income—not your net income—to calculate your PPP loan amount. Take your gross income (not to exceed $100,000), divide it by 12, and multiply that number by 2.5 to get your loan amount.
Can nonprofits get stimulus money?
Nonprofits with more than 500 employees were previously excluded from PPP funding in the December coronavirus stimulus bill. … This latest stimulus would make charities eligible if they employ up to 500 people per physical location and adds another $7.25 billion in funding, bringing the total available to $813 billion.
How long do we have to use PPP funds?
The two biggest changes rolled out in June 2020 were: The eight-week period to use your PPP funds was extended to 24 weeks. Previously, you had to spend at least 75% of the funds on payroll. You now need to spend only 60% of the funds on payroll.