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Shooting Gallery with Ducks

ALERT: Moving targets in SBA Paycheck Protection Program | One Louisville Fund taking applications

Changes in the PPP Loan terms + process
The SBA Paycheck Protection Program had three significant changes in the last day, making applying for a loan under the program something of a moving target:

  • Treasury Secretary Steven Mnuchin changed the interest rate from 0.5% to 1.0%.
  • The Treasury Department issued a revised Borrower Application Form.
  • The SBA just issued its Interim Final Rule on the PPP, which affects payroll cost calculations by (a) omitting independent contractors and (b) preferring “trailing 12-month” data to calendar 2019 data.

What does this mean for you?

  • If you already applied for a PPP loan, and already had your board pass a resolution authorizing that application for a loan at 0.5%, you probably need the board to pass a second resolution authorizing a loan at 1.0%, at least before your loan closes. Here is a draft resolution you can use. (This revised resolution authorizes a nonprofit to apply for a PPP loan at the lowest interest rate and for the longest term then allowed by the SBA and the bank.)
  • If you have applied for a PPP loan already, your bank may require you to complete and submit the revised application form. Some questions on page 1 are different, and applicants must make more certifications on page 2. The instructions on page 3 are also slightly different, and add a paragraph stipulating what “purpose of the loan” means.
  • Whether to count independent contractors in payroll costs had been unclear until today. But now the SBA has clarified the question in its just-issued 31-page Interim Final Rule on the PPP, which stipulates that independent contractors should NOT count as employees when calculating either PPP loan amounts or PPP loan forgiveness. (See pages 11 and 15 of the rule.) The rationale is that contractors can apply for PPP loans on their own so should not be countable twice.
  • The Interim Final Rule also indicates that the payroll cost calculation should be based on “the last 12 months” (page 5). Some banks may still prefer or accept calendar 2019 data, but you should be prepared to present payroll costs from April 1, 2019, through March 31, 2020, instead. (Here is a revised Excel worksheet for computing your average monthly payroll cost and loan amount.)

One Louisville Fund now taking applications!
Louisville Community Foundation logoWe are excited to report that the Community Foundation of Louisville is now accepting applications for funding from the One Louisville: COVID-19 Response Fund. The goal of this Fund is to attract and provide financial assistance to help communities, households, and nonprofits disproportionately impacted by the virus and its economic consequences. The Fund made its first rounds of grants on March 27 and April 3, but as of yesterday is accepting applications from others.

You can apply for funds from the One Louisville fund on line here.

PLEASE take or re-take the KNN Survey 2.0: Nonprofits across the Commonwealth
The Kentucky Nonprofit Network did one statewide survey of nonprofits and how the COVID-19 pandemic is affecting them. KNN is now seeking updates to this survey with fewer, more quantifiable questions to document nonprofits’ COVID-related loss of income and increase in expenses. Whether you participated in the first one or not, you can respond to this short (10-question) survey here.

Two COVID-19 CEO Roundtables

  • At 3 PM today, we will have a special roundtable, “Self-Care in the Time of COVID-19”  presented by Kimberly May, an experienced Life and Wellness Coaching Specialist who also spoke at our CHANGEMAKERS Conference last October. She will offer an array of actionable advice on tending to yourself during these stressful times. You can register here.
  • At 3 pm on Thursday, April 9, will engage with the Washington-based Center for Disaster Philanthropy. This webinar will help both nonprofits and funders understand the current state of the COVID-19 pandemic’s impact on communities and needs for immediate response and recovery. We will address how to prioritize activities and funds, ideas for best practices for funders, and key areas of need. You can register here.

“The List”: CNPE continually curates its useful COVID-19 Nonprofit Resources List.

The Facebook Group: Join our new Nonprofit Community Connection Facebook Group to engage informally with other local nonprofits and the CNPE staff on issues you are either struggling with or have had some success with.

Circuit trainingCNPE Self-Care Tip of the Day: Do the following workout circuit 3 times in a row, 3 times a week: Do 20 jumping jacks, take the heaviest thing out of your fridge and do 15 squats, then do 15 push-ups, a 30-second wall sit, 10 triceps dips, and a 30-second plank. (Hat tip to Morning Brew newsletter; we almost published this on April Fool’s Day, but forgot. It’s a good workout if you’re up for it.)

Hang in there. The next few weeks will be challenging, but we can do this together. Try to accept change as a normal part of life, and get your PPP loan application in ASAP.

My best,

Ann L. Coffey, CEO

The CNPE office is closed temporarily to help ensure everyone’s health. Our staff will be working remotely, though, and remain available to help members. Please don’t hesitate to contact us. CNPE Staff Contacts

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