CARES Act Information
Middle Tennessee is experiencing unprecedented challenges, especially when it comes to maintaining business operations during a crisis. In response, federal, state, and local governments are providing disaster relief loans and grant opportunities for nonprofit organizations. Check back here for ongoing updates and detailed information on the types of relief available to nonprofits, along with application information and deadlines.
January 10, 2021: SBA Extends Crucial Lifeline to Borrowers Impacted by COVID-19 with Debt Relief
|WASHINGTON – As the U.S. Small Business Administration continues implementation of the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, signed into law by President Trump on Dec. 27, 2020, SBA Administrator Jovita Carranza made the following statement in regards to Section 325:
“Small business is big business in America, and this Administration will continue to extend a lifeline to small business owners during this critical time. Congress charged the SBA with making debt relief payments (principal, interest and fee payments) under Section 1112 of the CARES Act to help borrowers in SBA’s 7(a), 504 and Microloan programs; and now SBA is working expeditiously to implement the newly enacted assistance.
The new law extends SBA debt relief authority, allowing the Administration to continue alleviating adverse economic effects of COVID-19 for small businesses with SBA loans. Since April last year, the SBA has made over $7.1 billion in payments across 1,819,130 loans on behalf of these borrowers. It’s important to note that these firms were also initially able to access capital because of the SBA federal guarantee.”
The SBA is determining how much additional debt relief assistance can be provided to SBA borrowers with the newly issued Congressional appropriation. Debt Relief guidance will soon be posted on the SBA website.
|About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
General Information for Nonprofits
Applying for Disaster Relief Funds
July 17 , 2020: Federal Reserve Board modifies Main Street Lending Program to provide greater access to credit for nonprofit organizations such as educational institutions, hospitals, and social service organizations
Tips for Preparing to Apply for Disaster Relief Funds
1. If you need board approval, seek it now.
2. Reach out to your lender.
- Find out if they are an SBA lender and whether they will be processing the SBA 7(a) Paycheck Protection Program loans.
3. Begin to prepare documentation you will need for the loan application:
- Organizational documents such as charter, certificate of formation, bylaws, and operating agreements
- Copies of drivers’ licenses for controlling owners
- Bookkeeping general ledger report on all entries that relate to payroll. This includes Salaries, Wages, Commissions, Vacation Pay, Parental Leave, Family Leave, Sick Leave, Allowance for Dismissal/Separation (Severance Agreement), Group Health Care Payments/Premiums, Retirement Benefits, State & Local Tax assessed on Compensation
- Recent IRS payroll tax filings (which includes number of employees)
- Reports detailing the trailing 12-month compensation for each employee
- Registration with DUNS, SAM, and Grants.gov. Learn more here.
Note: A nonprofit can apply for an SBA disaster loan (EIDL) AND the Paycheck Protection Program (both are through the SBA). However, the funds need to be used for separate expenses (no double-dipping) AND the EIDL amount would be subtracted from the amount forgiven in the Paycheck Protection Program.