Federal Loan & Grant Programs to Help Nonprofits with Short-Term Cash Flow Issues
SBA: Economic Injury Disaster Loan Emergency Advance. $10,000 emergency grant for nonprofits that are suffering temporary loss of revenue. Intended to provide immediate source of funding for nonprofits. Goal is to deposit funds into organization’s bank account within 3 days of application.
NOTE:Online application for $10,000 grant is same application for the low-interest EIDL loan. You must check box for the “advance grant” of $10,000.
SBA: Paycheck Protection Program. Provides short-term (8 weeks) of funds to employers to help keep workers employed. Employers are a eligible for low-interest loan equal to 2.5 times organization’s 2019 average monthly payroll costs for an 8-week period. Loan funds can be used to pay for payroll costs, mortgage interest, rent and utilities. Portion used for payroll-related costs will be forgiven, making the loan a grant. For any portion of loan not forgiven, borrower has 6 months to begin payments. Loan is for 2 years at significantly reduced interest rate of 1%. Organizations that received EIDL grant may apply for PPP loan. The application for PPP loan is processed by banks, not SBA. Call or go to your bank’s web site to begin application process.