Update 4-22-20: From AARP.org – The Senate voted to approve a $484 billion bipartisan economic stimulus bill Tuesday that would provide additional funding to small businesses and hospitals, along with more money to expand testing for the new coronavirus that has brought the American economy to a standstill.The bulk of the money — $322 billion — would be used to replenish the Paycheck Protection Program (PPP) for small businesses created last month by the CARES Act stimulus law. The Senate passed the bill via unanimous consent, which doesn’t record votes for individual legislators. The U.S. House of Representatives is expected to vote on the bill Thursday, and President Trump tweeted his support of the deal Tuesday afternoon.
- Federal Phase 1: Disaster SBA loans: Non-profits are eligible for low-interest (2.75%) loans from the Small Business Administration
- Federal Phase 2: Families First Coronavirus Response Act: Expands paid family leave, nutrition assistance, and expands unemployment coverage
- Federal Phase 3: The CARES (Coronavirus Aid, Relief, and Economic Security) Act was signed into law on March 27, 2020. (CARES Act, final document as of 3/27/2020)
- Federal Phase 3.5: coming soon.
- Streamlined application process
- How to apply for SBA funding – three step process
- Updates from SBA
- The SBA is offering informational webinars at 2 pm CDT daily (including Saturday and Sunday): an overview of the Economic Injury Disaster Loans available to Wisconsin small businesses, including nonprofit businesses and self-employed creative workers, with information on program eligibility, use of proceeds, terms, filing requirements, and additional small business resources. Learn more about the opportunities available so you can apply with confidence, and share this info with your networks. Register here.
- Paycheck Protection Program Loans (PPP): While there are several different provisions within the Act, the most significant with respect to non-profits is the Paycheck Protection Program. This is an emergency loan program providing loans of up to $10 million for eligible nonprofits and small businesses, permitting them to cover costs of payroll, operations, and debt service, and provides that the loans will be forgiven in whole or in part under certain circumstances.
- Small businesses and sole proprietorships, independent contractors and those who are self-employed are eligible to apply.
- Time is of the essence to prepare and submit your application for the SBA Paycheck Protection COVID-19 relief loan program, as these dollars will go quickly. Getting your application in as early as possible is one of the best things you can do.
- Talk to a lender who already knows you. They need to be approved to do 7a loans in order to process this loan. Here is a list of the top most active 100 SBA lenders. Other possibilities:
- IFF is partnering with the Community Reinvestment Fund, USA (CRF) to deploy $50 million of P3 loans to Midwest nonprofits. Click here for info.
- As you are applying for these new loans, be sure to read current loan documents and keep in touch with current lenders.
- Need guidance on small business relief, including applying for SBA loans? This is a very useful article.
The National Council on Nonprofits is surveying people and organizations about their experience with the PPP.
- Economic Injury Disaster Loans (EIDL): Creates emergency grants for eligible businesses, nonprofits and creative workers with LLCs and sole proprietorships enabling them to receive checks for $10,000. Once you apply, a SBA loan officer will be in touch for more information. Timeline is uncertain, but probably a few weeks from application to decision. Applications for that grant must be made through the SBA loan application.
- Disaster Unemployment Assistance (DUA) – Wisconsin Department of Workforce Development. DUA is a federally funded program under the Robert T. Stafford Relief and Emergency Act. The program provides unemployment benefits to those affected by a federally declared disaster as long as the individual does not qualify for regular state unemployment insurance and the individual is unemployed or partially unemployed as a direct result of the disaster. Please note: the DWD is experiencing an unprecedented amount of traffic online and on the phone, so be patient and keep trying.
- Have your different scenarios ready for cost containment and new revenue generation. Here is the 20 Degrees Nonprofit COVID-19 toolkit that can help with that.
- Small Business Owner’s Guide to the CARES Act fact sheet, 3-30-20
- The Economic Injury Disaster Loan (EIDL) Program vs The Paycheck Protection Program (PPP), Krost CPAs, 4-1-20
CARES Act for Nonprofits, Inside Charity, 3-28-20
Self-employed, freelancers, and independent workers
Unemployment insurance provisions in the CARES ACT, National Employment Law Project, 3-27-20
SBA Disaster Loan, Artist’s Edition: What You Need to Know: Do artists qualify for a SBA disaster loan? More importantly, should artists apply? The short answer is yes. Here’s what you need to know. Analysis by Jenie Gao, Madison artist/entrepreneur, 3-27-20.
The CARES ACT: What it means for self-employed, freelancers, and independent workers, MBO Partners, 3-27-20
The Crazy-Could-Be-3-Day-Creative-Class Stimulus, gener8tor, 3-27-20
- U.S. Chamber of Commerce Small Business Guide
$75 million for the National Endowment for the Arts
$75 million for the National Endowment for the Humanities
$75 million for the Corporation for Public Broadcasting
$50 million for the Institute of Library and Museum Sciences
$25 million for the Kennedy Center
$7.5 million for the Smithsonian
As is required, 40% of what the Arts Endowment receives is passed along to the state and regional arts agencies for distribution. In this case, the result will be that $30 million is distributed among state arts agencies (for Wisconsin, the Wisconsin Arts Board).
How much funding Wisconsin will receive from the National Endowment for the Arts and what criteria will be used for determining distribution amounts.
What restrictions/requirements will come with the funding.
When the funding will be available for distribution by the Wisconsin Arts Board.
Sources to check out:
- US Small Business Administration (SBA.gov)
- SBA Loan Application
- What Businesses and Lenders Need to Know About the CARES Act, by Bryan Cave Leighton Paisner Law
- New $2 Trillion Coronavirus Relief Bill: What It Means for You and Your Business, by KJK Attorneys