The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. According to the SBA, First Draw PPP Loans are for borrowers who had not received a PPP loan before last Aug. 8. Second Draw PPP Loans are for eligible small businesses with 300 employees or fewer that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, as well as demonstrating at least a 25% reduction in gross receipts … Nonprofits are eligible for PPP if they have either: 1) 500 employees or less, or 2) no more employees than the size standard established by the SBA for their industry. In this webinar we will discuss applying for new Paycheck Protection Program (PPP) loans and how to maximize PPP loan forgiveness. Here are the key issues the bill addresses for nonprofit organizations, their employees, and donors: As with PPP1, the costs eligible for loan forgiveness in PPP2 include payroll, rent, covered mortgage interest, and utilities. PPP Reforms. While we have begun to slow down some of our interactive offerings, we will keep the Toolbox available to you throughout 2021.You can read more in our latest PPP email.. Congress has passed the Economic Aid Act that streamlines the forgiveness process for borrowers … hbspt.forms.create({ REGISTER NOW! In this webinar, we will cover: -Frequently asked questions (and answers!) The maximum loan amount has been cut from $10 million in the first round to the previously mentioned $2 million maximum. highlights changes in the PPP law that impact nonprofits, including citations to the law for additional detail. Generally, no. $16.5 million Initiative for BIPOC Arts & Culture Organizations Launched in Chicago. Getting Up to Speed with QuickBooks Online: Tips and Tricks for Nonprofit Users. This article represents our understanding of the situation at the time it was written. formId: "d3dfc2e3-3674-4b26-9052-2c2ac700caf3"  Provides $20 billion for additional $10,000 grants; repeals deduction of EIDL grants from the amount of loan forgiveness. Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations. -Ways to maximize PPP loan forgiveness About 450 received between $5 and $10 million. 3507 and 750 CA (for purposes of PPP only) CONTROL NO. Please consult your legal and accounting experts, as well as government websites, and rely on them as the final authority. 1 The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or (2) if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day) Covered Period. PPP Loan Forgiveness Application, Template & Video for Nonprofits provides charitable execs clarification and the tools they need to turn a portion (or all) of their PPP Loan into a grant. Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines. On Demand! PPP2 also makes the following potentially forgivable:Â. Charitable Giving Incentives: Reestablishes the $300 above-the-line deduction for 2021 and applies a $600 deduction for couples filing jointly in 2021; imposes a penalty for overstating contributions. On December 20, 2020, both chambers of Congress announced that they had agreed on a new stimulus bill, which the President is expected to sign into law. Second round of PPP loans to help struggling small businesses and nonprofits survive Businesses that did not receive PPP Loans in the first round have priority in the second round. We are not lawyers and do not pretend to be. Federal Disaster Loans for Businesses, Private Nonprofits, Homeowners, and Renters. PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year before the loan or the calendar year, the same as with PPP1. To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either eight or 24 weeks—the same parameters PPP1 had when it stopped accepting applications in August. Nonprofits and the Paycheck Protection Program (PPP) New eligibility requirements and program guidance in 2021. Second Draw PPP loans are for eligible small businesses with 300 employees or fewer that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, as well as demonstrating at least a 25% reduction in gross receipts … On December 20, 2020, both chambers of Congress announced. The size standard for “religious organizations” is a monetary cap on annual receipts rather than a cap based on number of employees . In 2021, nonprofits may be eligible to apply for a new round of PPP Loans. -The latest changes to the PPP loan forgiveness rules and how it could affect your application Please note that this article is provided for informational purposes only.  Provides $15 billion dedicated to aiding performance venues, independent movie theaters, and cultural institutions. about PPP loan forgiveness and other pandemic relief options. PPP2 also makes the forgivable loans available to Sec. Here are the key issues the bill addresses for nonprofit organizations, their employees, and donors: NOTE: Nonprofit “gross receipt” defined using the tax-law definition and not the arbitrary definition seen in earlier drafts. Learn More. Borrowers are required to retain relevant records related to employment for four years and other records for three years, as the SBA may review and audit these loans to check for fraud. Forgiveness: Expands forgivable expenses to include the costs of PPE, workplace modifications, short-form approval of loans of $150,000 or less. Pursuant to the Economic Aid Act, the latest round of PPP Loans rolled out to eligible borrowers to pay payroll costs, including benefits during the covered period as set forth in the regulations. The Paycheck Protection Program (PPP) has provided nearly 4.9 million loans to American businesses. 9 Email Marketing Tips To Increase Your Conversion Rate, PPP Round 2 for Nonprofits & The December Stimulus Bill, Turn Website Visitors into Email Subscribers: The Benefits of Email Marketing, Maximize Your Call to Action for a Better Conversion Rate. We encourage you to check out the SBA’s PPP website as they release new guidance and watch for updates from your lender. Produced over the weekend by the team at QuickBooks University and reviewed by INSIDE CHARITY these utilities make sense of what is arguably the next important step nonprofits face as … YPTC is not a CPA firm. Join YPTC as we kick off the new year with our latest Staying Afloat webinar. Includes set-asides to support first- and second-time PPP borrowers with 10 or fewer employees, first-time PPP borrowers that have recently been made eligible, and for loans made by community lenders.