Financial Assistance Updates
Since news and information about the new financial assistance programs for small business (including nonprofits and churches) is changing rapidly, we will be collecting and posting relevant details here on a regular basis. Refer back to this article for updates.
— The Auxilio Team
Thursday, April 9, 2020
For those of you who are still considering applying for a Paycheck Protection Program loan through the Small Business Administration [SBA] as part of the CARES Act, the FAQ’s were updated last night on treasury.gov. FAQs specific to churches and religious nonprofits can be found at SBA Faith-based FAQ.
Thursday, April 2, 2020
CapinCrouse, nonprofit & church auditors, will conduct a 30-minute webinar this afternoon to review the PPP application process. Their COVID Resources page is also useful
The Treasury Department has provided a helpful Fact Sheet on PPP. It gives a bit more information about the application process and still gives Friday as the start date for application.
The Treasury Secretary addressed the concern that $350 Billion may quickly run out in an interview last night, suggesting that if it does, he will ask for more.
Survey of banks: As of this morning, there is still little to no information. A couple have set up pages which will be updated as they know more.
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Capital One: Supporting our business community
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Chase: Business Update
Wednesday, April 1, 2020
Excellent overviews of the CARES Act as it relates to churches & nonprofits:
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Church Law & Tax: The CARES Act for churches
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ECFA: Webinar summary
Paycheck Protection Program
The SBA has expanded the information on its Paycheck Protection Program [PPP] page to include “How to Apply” and “Loan Forgiveness” details.
Best overviews of the loan/grant options available are by the nonprofit law firm Gammon & Grange
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Cares Act Alert #1: PPP Overview
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Cares Act Alert #2: PPP Eligibility and document preparation
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Cares Act Alert #3: Comparing PPP and EIDL [Economic Injury Disaster Loan]
The PPP will be administered through the Small Business Administration [SBA] lending banks—Here is a list of the 100 most active SBA banks.
The SBA has provided A sample of the expected PPP application for download.
Tuesday, March 31, 2020
As of this morning. SBA has on its site a general description of and broad eligibility requirements for what it is calling the Paycheck Protection Program
No application process yet but in an email to business customers late yesterday, Bank of America outlined what it expects will be needed by businesses who plan to take advantage of the program:
As a part of the new legislation, the Small Business Administration (SBA) has created a nearly $350 billion loan program called the Paycheck Protection Program. This program is available to businesses with 500 or fewer employees to help with payroll, rent, utilities, healthcare costs and more. The SBA has also expanded a number of their existing programs, including the Economic Injury Disaster Loan program.
The federal government is currently finalizing the details and protocols about how and when different programs and relief will be implemented, and how Bank of America as a financial institution will help facilitate the execution of these programs.
If you believe that you will qualify for relief from the CARES Act:
Although details are still being finalized, some documentation may be required when applying for a program when it becomes available.
Based on the legislation, it may be helpful for interested business owners to gather the following information about their business:
— 2019 Payroll — including the last 12 months of payroll
— 2019 Employees — 1099's for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099's for services)
— Healthcare costs — all health insurance premiums paid by the business owner under a group health plan.
— Retirement — your company retirement plan funding paid for by the company.
Economic Injury Disaster Advance Loan
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid.
Monday, March 30, 2020
Treasury Secretary Steven Mnuchin on Monday said he hopes that the administration will release documents and instructions later in the day covering how small businesses can apply for loans created by the coronavirus relief package President Trump signed on Friday.
In a phone interview with Fox Business Network, Mnuchin said that the process for obtaining the loans will be "very simple," and that small-business owners will be able to go to existing Small Business Administration lenders as well as banks, credit unions and financial technology lenders to apply...
The Treasury secretary also reiterated he expects that the loans to be available starting on Friday.
The new coronavirus relief law creates a $350 billion program that allows small business owners to apply for loans that would be forgiven if they hire or retain their workers. The loans are designed to cover eight weeks of a business's payroll, and a business can receive a loan of up to $10 million under the program.