The good news is that both the US government and state governments are making available some financial support for organizations (both for-profit and not-for-profit) as well as individuals during these challenging times.
The bad news is that this situation is moving fast (and on the virus's timeline, not one of our making). So, organizational leaders need to be constantly scouring for new information as programs and policies shift.
I have come across a few documents that I think might be helpful to both for-profit and not-for-profit organizational leaders trying to navigate these waters and they are posted here.
Here is a link from the US Senate Committee on Small Business & Entrepreneurship to "The Small Business Owner's Guide to the CARES Act," a helpful FAQ. Please note that while this is focused on "small business" it also includes financial support for 501c3 organizations with fewer than 500 employees.
In addition, as a subset of the EIDL there are Emergency Injury Disaster Grants for up to $10,000 that, if approved, are available within three days of the application. These are grants, so if awarded, do not have to be repaid. The US Chamber of Commerce has put together the attached one-page summary that you can also find here.
Some states are also providing relief in the form of work-share programs (there are a variety of names, of course) so that if companies pay a portion of a worker's salary, the state unemployment office will pay the balance so that the worker is working full time and being paid full time. Here is a link to a website with links for various programs for each state. The company that is the source for these links, Nav, seems to provide business credit support for small businesses; I don’t know anything about them, but the links go to state government websites.
While speed is important in applying for programs (it has been widely reported that the monies allocated thus far will run out quickly), it is also important that you research these programs thoroughly. For example, the PPP program provides funding for payroll, but if you layoff or furlough staff as compared to your payroll base as of February 15, 2020, you will need to repay this. It will be considered a loan, not a grant. (see footnote 3 in this chart) In addition, the Paycheck Protection Program (PPP) prohibits borrowers from taking out two loans for the same purpose, so craft your financial support strategy carefully.
As a caveat, I am not an attorney nor am I an expert on these programs. It is up to you to read these and other guides in order to find the best mix of support for your own organization, whether it is a company, a church, a social ministry organization, school or other entity. Best wishes as you look for creative ways to sustain your organization through these trying times.
Beth A. Lewis
© Getting2Transformation 2020
We just sent you an email. Please click the link in the email to confirm your subscription!