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.
April 22, 2021: American Rescue Plan Act Updates
Paid Leave Tax Credits: The IRS recently issued Fact Sheet 2021-09 explaining that under the American Rescue Plan Act, employers are entitled to refundable payroll tax credits for providing paid leave to employees who take time off related to COVID-19 vaccinations. The tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through September 30, 2021. The Fact Sheet provides helpful tips about which employers are eligible, the leave for which the tax credits can be claimed, the amount of the credits and how they are calculated, and how to claim the credit.
State and Local Fiscal Recovery Fund: The Council of State Governments has produced a helpful guide that explains the $360 billion in new monies available to state, local, Tribal, and territorial governments via the American Rescue Plan Act. The guide also explains allowable uses and restrictions for the funds. It provides a breakdown of the funds by state government, metropolitan cities, other non-counties, counties, state capitol projects, and totals. Analysis for States: The Coronavirus State and Local Fiscal Recovery Fund, Council of State Governments, April 2021.
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.