Government Loans For Nonprofit Organizations

Helping Nonprofits Raise More Major Gifts

We recently started a $40 million capital campaign. With iWave, I was able to gather and verify critical wealth and philanthropic information about a prospect that led to a $10 million gift from that individual. iWaves research platform helped us get 25% of the way to our goal with that one prospect alone.

What New Benefits Can We Give To Our Current Staff And To People Weve Laid Off

What can we do for our current staff?

• A safe environment for staff is essential, especially for staff who are continuing to interact with the public. Cal/OSHA has developed guidelines for specific workplaces . Some counties may have additional or different guidance check your county department of public health. You can find fliers for workplace safety in more than 30 languages here , and fun posters in a few languages from the CDC here.
• Health insurance: if you are not providing health insurance for some or all of your staff, remind them that a good option for them may be Covered California , which has extended its enrollment period to the end of June.
• Sick and family leaves: The federal Families First Coronavirus Response Act in general expanded on the Family and Medical Leave Act of 1993 to require paid sick leave and paid family leave.
• Check with your insurance broker to make sure your employees are covered by workers’ compensation insurance if they are working at home for the first time. You may be advised to put various risk management systems in place, such as ensuring that your employees understand how to keep their home offices safe. To advocate for self-insured nonprofits, go to:.

What can we do for our laid-off workers?

Sba Disaster Assistance Available To California Private Nonprofit Organizations

SACRAMENTO, Calif. Low-interest federal disaster loans are now available to certain private nonprofit organizations in California following President Trumps federal disaster declaration for Public Assistance as a result of wildfires that began Aug. 14, 2020, announced Administrator Jovita Carranza of the U.S. Small Business Administration. Private nonprofits that provide essential services of a governmental nature are eligible for assistance.

These low-interest federal disaster loans are available in Monterey, Napa, San Mateo, Santa Cruz, Solano and Sonoma counties.

Private nonprofit organizations should contact the California Governors Office of Emergency Services Recovery Section by emailing or by visiting to obtain information about applicant briefings, said Director Tanya N. Garfield of SBAs Disaster Field Operations Center-West. At the briefings, private nonprofit representatives will need to provide information about their organization, continued Garfield. The Federal Emergency Management Agency will use that information to determine if the private nonprofit provides an essential governmental service and is a critical facility as defined by law. If so, FEMA may provide the private nonprofit with a Public Assistance grant for their eligible costs. If not, FEMA may refer the private nonprofit to SBA for disaster loan assistance.

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Financing Solutions Line Of Credit For Nonprofits

In 2012, Financing Solutions began to provide loans for nonprofit organizations in the form of a line of credit and since then has been a top nonprofit lender to smaller nonprofits whose yearly revenues are under $5 million. Nonprofits are now setting up credit line for emergencies or opportunities when cash flow is temporarily down instead of borrowing money from a donor or their board.

Financing Solutions streamlined the loan approval process by not requiring any collateral or personal guarantees and instead approves nonprofits based on their cash flow. In essence, Financing Solutions looks at simple documents like a nonprofits 990 and bank statements to determine how much the line of credit can be approved for. The nonprofit online line of credit application takes 2-minutes to fill out and the line of credit costs nothing until used, making it a great cash backup plan.

What Other Student Loan Relief Programs Should I Explore

If you dont qualify for Non Profit Loan Forgiveness, then dont fret, because you may still be eligible for all sorts of other forgiveness, discharge or relief benefits.

There are currently tons of programs available for both Federal and Private loan holders, and my website contains over 100 Guides containing advice on utilizing these benefits packages, so the good news is that youre in the right place for learning to deal with your debt!

To find out how to get Help with Federal Student Loans, youll want to look at my Guides on:

Federal Student Loan Relief Programs

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Emergency Support For Small To Midsized Nonprofits

The bill creates a new Emergency Small Business Loan program within the SBA 7 loan program. To be eligible, nonprofits or for-profits must have been in existence on March 1, 2020 or earlier and have 500 or fewer employees. An important provision: under this new program, loans are forgivable if the nonprofit or for-profit keeps staff on the payroll between March 1 and June 30. This, in essence, turns the loan into a general operating support grant. Forgivable loans of this type can be taken out for as much as $10 million and can be used to meet payroll and associated costs , facilities costs, and debt service.

Further good news: A provision in earlier drafts that would have disqualified nonprofits that are eligible for Medicaid payments was removed from the bill.

Loans Available For Nonprofits In The Cares Act As Amended

The Coronavirus Aid, Relief, and Economic Security Act CARES Act defined a number of programs that charitable nonprofits will be eligible to apply for. The chart that follows provides information on those loan options, eligibility criteria, terms, and application information. This chart is neither financial nor legal advice for any specific organization. It is an analysis of the new law before any rules or regulations.

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Chapter 2 How To Complete The Npo Information Return

The information in this section follows the order of the lines on the return, which is divided into the following seven parts:

Part 1 Identification Part 2 Amounts received during the fiscal period Part 3 Statement of assets and liabilities at the end of the fiscal period Part 4 Remuneration Part 5 The organization’s activities Part 6 Location of books and records Part 7 Certification

You have to complete all parts of the return that apply to the organization.

Community Development Financial Institutions

What it is: Financing generally in lower amounts from lenders that specialize in financially assisting nonprofits and charities.

In a similar vein, CDFIs are lenders that specialize in offering financial assistance to nonprofit businesses. This includes loans for charities and other nonprofit organizations. Note that loan amounts may be smallâthough, on occasion, some do offer higher capital amountsâand interest rates might be high. Still, if youâre having trouble finding a loan for your nonprofit, researching CDFIs could be a viable option.

CDFIs are generally nonprofits themselves, or some might be financial institutions, including banks or credit unions. Be sure to look locally for CDFIs, since they often operate within local or state jurisdiction.

Getting Started: To kickstart your research, check out our Connect2Capital review. Conenct2Capital is a platform that connects small business owners with a network of nonprofit CDFI lenders that want to support organizations with a worthy vision and cause.

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The Cares Act: Key Loan And Grant Programs For Nonprofit Organizations

Update:

Certification That Funds Are Necessary

Following recent press and new guidance from the Small Business Administration , many nonprofit organizations are carefully considering whether borrowing funds under the Paycheck Protection Program is necessary for their organization, a critical component of the loan application. This applies both to previous applicants and those planning to apply following the over $300 billion in newly-appropriated funds for PPP loans under the most recent federal legislation.

Certain nonprofit organizations are clearly experiencing extreme economic uncertainty and funding issues, and have had no issues comfortably certifying to their lender and the SBA in their PPP loan application that economic uncertainty makes loan request necessary to support the ongoing operations of the Applicant.” But for those organizations with larger endowments or other access to material liquidity, this standard remains amorphous.

The SBA has since released additional guidance regarding the necessary certification, aimed mostly at large public companies and private companies with adequate sources of liquidity. That guidance emphasizes the importance of carefully considering and documenting how the organization reached its conclusion that the PPP loan was necessary to support ongoing operations. SeeSBA FAQ Questions 31 and 37, published April 23, 2020, and April 28, 2020.

Calculating FTE Employees

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Original text: 04.01.2020

Canada Emergency Rent Subsidy

What is it?

The Canada Emergency Rent Subsidy is a new program that will provide businesses, charities, and nonprofits with a subsidy that could cover up to 90% of eligible fixed property expenses, including rent and interest on commercial mortgages. This program will be administered by the Canada Revenue Agency .

What is the update?

Who is eligible?

Eligible entities for the CERS will generally be the same as eligible employers under the CEWS. Eligible entities must have experienced a drop in revenue and have eligible expenses for qualifying properties. Entities must also meet one of the following criteria to be eligible: a) have a payroll account as of March 15, 2020 or have been using a payroll service provider or b) have a business number as of September 27, 2020 and satisfy the CRA that it is a bona fide rent subsidy claim.

For further details about eligibility criteria, you can visit the Who can apply page on the Government of Canadas CERS webpage.

How can organizations apply?

Applications are currently open for the first three claim periods . Upcoming period dates will be added soon. All applications must be made on or before 180 days after the end of the qualifying period.

Eligible entities are able to apply for the subsidy through their CRA My Business Account.

You may visit the CERS webpage on the Government of Canadas website to find further information and resources to help you apply.

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Quick Facts About Government Grants

• The United States government has been issuing grants for the past century.
• Grants are offered to eligible applicants in order to support specific public purpose. Therefore, the United States government does not offer any grants to support any individuals or organizations for their own financial gains.
• The majority of the funding opportunities are for businesses and organizations. Therefore, government grants are not for everyone.

Wage Subsidy For Canada Summer Jobs Program

The federal government announced temporary changes to the Canada Summer Jobs program that will help employers hire summer staff and provide young Canadians access to the jobs they need during this unprecedented time. This program will help create up to 70,000 jobs for youth between 15 and 30 years of age. The changes to the Canada Summer Jobs program will help small businesses hire and keep the workers they need so they can continue to deliver essential services.

The temporary changes to the program for this year include:

• an increase to the wage subsidy, so that private and public sector employers can also receive up to 100 percent of the provincial or territorial minimum hourly wage for each employee
• an extension to the end date for employment to February 28, 2021
• allowing employers to adapt their projects and job activities to support essential services
• allowing employers to hire staff on a part-time basis

For more information, please consult this link:

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Wage Top Up For Essential Workers

This program provides a wage top-up to essential workers, particularly those who are make less than they would on the CERB. To be eligible, you need to work in an essential service , and make less than $550 a week. If you are eligible, you can get up to $100 more a week. The program is called IPREW, and aims to retain more essential workers.

How To Apply For Non Profit Forgiveness

You dont apply for PSLF until youve fully satisfied the conditions of the program , BUT, as I mentioned above, you should be Certifying your Employment each year, as this can speed up the process of getting an approval once youve made the 120th payment.

Once you complete the 120th payment, fill out the PSLF Application, which you can find here and submit the paperwork along with your Employers Certification to FedLoan Servicing, the official Federal Government Loan Servicer for the PSLF Program.

You can Mail in your PSLF Application, Fax it, or Upload it via their website.

To Mail Your Form, Send It To:

• U.S. Department of Education

To Fax Your Application, Send It To:

• 717-720-1628

To Upload Your Application, Go Here:

• https://myfedloan.org/borrowers/special-programs/pslf/pslf-completing-ecf

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Which Sba Loans Can Nonprofits Qualify For

Nonprofits can qualify for the Paycheck Protection Program and Economic Injury Disaster Loan loans.

EIDL

The EIDL program originally offered loans up to $2 million based on your operating expenses but that has since been lowered to just $150,000. The interest rate for the EIDL is 2.75% for nonprofits. Terms can stretch as long as 30 years, depending on your organizations ability to repay.

The America Rescue Plan Act also relaunched the EIDL targeted grant. This time its only $5,000 and will roll out to businesses and nonprofits that saw a 50% decrease in revenue with no more than 10 employees.

After two weeks, it will become available to all businesses or nonprofits with 10 employees or fewer. And after another two weeks, it will be available to all eligible nonprofits and small businesses.

How to apply

You can apply for an Economic Injury Disaster Loan by filling out a short application on the SBA disaster loan website. These loans are only available directly through the SBA you cant apply through a bank or other lender.

Generally, it can take anywhere between 20 minutes to just over an hour to complete. Due to the high volume of applications, processing times vary and it may take a few weeks or longer to receive funding.

PPP loans

How to apply for a PPP loan

Loan Support For Larger Entities With 50010000 Employees

The stimulus bill also calls for the creation of a loan and loan guarantee program via a new Industry Stabilization Fund specifically targeting mid-size organizations, defined as having between 500 and 10,000 employees.

This provision, unlike the emergency SBA loan program, does not provide loan forgiveness, but does mandate an interest rate of no higher than two percent and would not accrue interest or require repayments for the first six months. Nonprofits accepting the mid-size business loans must retain or rehire at least 90 percent of their staff at full compensation.

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Should I Apply For Non Profit Forgiveness

If you satisfy the eligibility conditions of PSLF, then you should absolutely apply for forgiveness.

In fact, even if you dont qualify for the program, I would highly advise considering changing jobs in order to gain access to these benefits, because theyre the fastest, cheapest way to get rid of your Federal student loans without paying for them.

Its even possible to qualify for complete forgiveness via PSLF without paying a single penny toward your debt, since monthly payments are based on income, some people qualify for $0 monthly payments, and even $0 payments will still count toward your required 120 payment threshold.

If youre having trouble affording Federal student loans, theres no more powerful program than PSLF. To put it as clearly as possible, you should definitely be working toward earning these benefits!

Government Funding For Nonprofits During Covid

CORRECTION: We had previously asserted that Revenue Quebec has pushed back the date for tax filings to July 31st, but the date is in fact June 1st. Read here for the latest information.

A lot of you are stressed right now. In addition to the energy, attention, and care many community groups are putting into transforming their services and finding new ways to meet the needs of their members, theres the question of money. How will we pay for all the things we just bought and the people we just paid? What happens in the long term?

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Dont Be Fearful Of Learning More About Financing Tools

Many nonprofits are fearful of nonprofit lenders thinking that every penny that is paid out to a nonprofit lender is a penny that is not used for your cause. However, as a nonprofit gets bigger your organization will begin having similar needs to many for-profit businesses. Knowing where to turn to for funds based on what you are trying to accomplish can help your organization which in turn can help others.

Financing Solutions Nonprofit Line Of Credit Program

During the 2008 great recession, it became apparent to many small businesses and nonprofits that the commercial banking system was not designed to work with companies with yearly revenue under $10 million. Yes, the SBA loan program was created to help small businesses, but in reality, the SBA loan program still had certain restrictions. So, nonprofit business owners were left with the challenge of how to get funds for a nonprofit organization.

Lenders that catered to funding specific industries started to replace commercial banks. One such company was Financing Solutions which carved out a niche in providing Nonprofits with a Line of Credit. Financing Solutions is now the leading provider of lines of credit to smaller nonprofits throughout the United States which is helping to fund nonprofits qwhen cash flow is termporarily down.

A nonprofit line of credit is a type of loan for nonprofitsa predetermined amount of money a nonprofit organization can access when needed. It is an affordable cash backup plan that helps nonprofits when cash flow is down or expenses are up. In many cases, the nonprofit line of credit is mainly used by nonprofits for essential expenses that must be paid on time, such as payroll, rent, etc. A dip in cash flow at a nonprofit is often only temporary due to a delayed reimbursement or a seasonal slowdown at certain times of the year.

Financing Solutions specifically designed its line of credit program with nonprofit loans in mind. Plus,

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