Coronavirus (COVID-19) Financial Relief for Nonprofits: Loans & GRANTS
*Editor’s note: This post was originally published 4/7/20. Here is an update on 4/22/20:
On April 21st, the Senate approved a second funding deal of $484 billion in additional federal funding for coronavirus relief. Congress is set to add $320 billion more for the Paycheck Protection Program (PPP), $60 billion of which would be set aside for small lenders. The PPP passed on March 27th ran out of the initial $349 billion the federal government earmarked for it in just under two weeks, so don’t wait to apply.
On March 27th, Congress unanimously passed the largest economic relief package in US history. The Coronavirus Aid, Relief and Economic Security (CARES) Act is a $2 trillion plan to provide financial relief to businesses, families, and individuals.
So what does this Federal emergency funding mean for nonprofits?
If you’re a nonprofit with less than 500 employees, you could be eligible for a loan of up to $10 million to cover payroll and operations expenses, which will be forgiven in whole or part, as long as you keep your staff. This effectively means the government is giving out grants – all you have to do is avoid layoffs. This is part of the Paycheck Protection Program.*
The Paycheck Protection Program program launched on April 3rd, so don’t wait to apply for relief. The deadline is June 30th, 2020.
In addition to this, there are two types of Economic Injury Disaster Loans (EIDL) offered. Under the standard EIDL, “private” nonprofits are eligible for up to $2 million.
The Council of Nonprofits lead a webinar that does a fantastic job breaking down the components of the CARES Act and delineating how nonprofits can receive these benefits:
- You can watch the webinar recording here.
- You can download the webinar slides here.
- You can also reference this table for a handy visual.
- And here is an emergency loans guide and checklist from the U.S. Chamber of Commerce.
If you’re in doubt about whether your organization qualifies for a loan program, the Independent Sector is sharing tips on how to file for relief. They recommend that you file and let the Small Business Administration (SBA) decide, as they are expected to take a broad approach to eligibility. So when in doubt, file.
Grant opportunities
Hundreds of U.S. community foundations have joined the ranks in creating, mobilizing, and donating to relief funds directed to the critical relief efforts of local nonprofits to support those affected by COVID-19.
- We have rounded up resources & grants for nonprofits in this A-Z list by State.
- The Chronicle of Philanthropy has rounded up U.S. grants being awarded specifically for COVID-19 responders.
- Here are more, notable new grant makers as well as foundations inviting proposals for rapid response grants.
- Giving Compass and National Center for Family Philanthropy have created a richly interactive map of vetted COVID-19 relief funds.
ADDITIONAL RESOURCES FOR NONPROFITS DURING CORONAVIRUS (COVID-19)
- What Nonprofits Should Do Right Now – the Nonprofit Finance Fund shares insights, templates, and tools as well as SBA resources.
- We’re sharing a virtual event conversion guide, resources on how to postpone or go virtual with your fundraising events, and talk tracks for navigating refund conversations – Nonprofit Fundraising Event Coronavirus Survival Guide.
- In light of the current and rapidly evolving circumstances, CCS offers general principles and specific guidelines around fundraising efforts – Principles for Fundraising: The Coronavirus and Philanthropy.
- Responding to the Coronavirus Outbreak: Resources to Help Nonprofits – The Chronicle of Philanthropy.
Disclaimer: Please note that this is our best understanding of the new resources available and is not legal or financial advice.
