Congress expected to approve more funding for PPP and EIDL Loans this week!
Congress is expected to approve additional funding for the Paycheck Protection Program and Economic Injury Disaster Loan programs for small businesses and nonprofits in the next couple of days and President Trump is expected to sign the bill as early as Thursday, making funding available to banks by Friday, April 24, 2020. This means that banks could start accepting new applications for PPP loans as early as this Friday. Every bank has their own process and banks may open their doors to new applications at different times. Some may choose to process the “in process” applications that did not get funded in the first round first.
Get Ready Now
- If you have an application “in process” or “pending”, check with your bank now about where your application is in their process and whether your application is complete.
- If you are considering applying for the PPP loan in this second round of funding:
- Review the overview of the PPP Program from the Treasury Department.
- If you couldn’t find a bank to process your application in the first round, check with local credit unions, nonprofit lenders, or Community Development Financial Institutions (CDFI) to see if they are processing applications in this second round. SBA has approved more lenders to process PPP loans since the first round. Congress has directed SBA to approve more lenders including nonprofit lenders and CDFIs.
- Review the SBA Sample PPP Loan Application and get familiar with the questions and certifications in the application. Banks may use their own application form, but the questions and certifications in the Sample PPP Loan application will be included in every bank application.
- Work with your bank to get your application documentation complete and ready to apply now, so you will be ready to apply as early as possible. Every bank requires different documentation. Common documentation requirements include:
- Financial Statements for 2019 or the last 12 months;
- Business License
- Articles of Incorporation
- Calculation of the “average monthly payroll”. Note that there are specific requirements to include and exclude in this calculation. Your bank may have a calculation worksheet for you to use. There are many available online. One such loan calculator is made available by JewishTogether.org. You may want to consult your accountant to help you with this calculation.
- Payroll documentation for 2019 or the last 12 months.
- For Nonprofits – Bylaws and Meeting Minutes showing authority to borrow.
Additional Resources and Services
New Funding Opportunities
There are other funding opportunities, in addition to the Federal loan programs, that are available from State and local government agencies and private sources. Here’s alist of funding opportunities for nonprofits and small businesses in Washington State. Note that our list may not be exhaustive.
EIDL Application Video and PPP Application Walk-Through Videos
Communities Rise has created short (20 minute) videos walking through the Economic Injury Disaster Loan applications for Nonprofits and for Small Businesses.
- EIDL Application (Nonprofits) Instructional Video
- EIDL Application (Small Businesses) Instructional Video
- PPP Loan Application Instructional Video will be available on our website soon. Please check our website in the coming days.
New Covid-19 Small Business and Nonprofit Legal Clinic
Communities Rise will be launching a Covid-19 Small Business and Nonprofit Legal Clinic providing free 60-minute legal consultations starting next week. See our calendar for more information in the coming days.
Please note that this funding alert provides general information about funding and is not legal advice. It does not create an attorney-client relationship. You may want to speak with an accountant or attorney about whether your organization should apply for funding. If your organization needs covid-related legal or capacity building support contact us. For non-Covid-related support, email us at email@example.com or check out our website atcommunities-rise.org.