Stimulus Funds Are For Churches, Nonprofits and Sole-Proprietors Too

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Many small businesses and organizations are in dire straits as life, and cash flow, grinds to a halt. The economic reach of the Coronavirus shutdown is unparalleled and it is affecting for-profit businesses, churches, nonprofits and sole-proprietors alike. 

If you run an organization with less than 500 employees and you are suffering financial hardship due to COVID-19, listen up. The federal government just passed a $2 trillion stimulus bill, and $349 billion is set aside to help you via the Paycheck Protection Program. It is intended to ensure small businesses and a number of other entity types can continue to pay their employees and prevent layoffs. 

LET’S TALK SPECIFICS IN LAYMAN’S TERMS:

Is this a loan or a grant?

• These funds are designated as forgivable loans, as long as the funds are used to pay employees, rent, utilities and other business-related debts. That means the principle effectively becomes a grant 8 weeks following the distribution of the loan.

Do I have to pay interest?

• You are not responsible for interest on the forgiven loan amount. However, if you do not retain your original employees, then your loan will not be forgiven in full and you will be responsible for the interest accrued on the unforgiven loan amount.

Who qualifies for these funds?

• A number of entities qualify for these funds including businesses, nonprofits, houses of worship, freelancers, self-employed, and even gig workers like Uber and Lyft drivers.

When can I apply for these funds?

• Organizations should be able to apply by April 3, 2020 (strong emphasis on should, as the scale of this endeavor is unprecedented).

Who is facilitating these loans?

• Funds will be offered through most FDIC-insured banks, credit unions and fintech lenders, in addition to established Small Business Administration lenders.

How do I apply?

• Per the U.S. Senate Committee on Small Business and Entrepreneurship FAQs, you can call your bank or find a list of SBA-approved lenders in your area through the SBA’s online Lender Match tool. 

 If you would like additional information on this program and all you will need to apply for funding, TogetherLA is hosting an information session on Thursday, April 2 at 12:00 PM PDT. Click here to register