Do you remember Steven Covey’s Four Quadrants for prioritizing tasks? The ones to tackle first are both urgent and important. Today, your urgent, important task is to decide whether to apply for a forgivable loan under the SBA’s Paycheck Protection Program – and then do it!
Banks can start making these loans THIS FRIDAY, APRIL 3, and we expect funds to be depleted quickly. (Just yesterday, the Treasury Department set the PPP loan terms: 0.5% interest for two years, with the first payment deferred for six months. You want this.) The good news is that CNPE has your back. We have compiled the essential forms and explanations you need to start your application. And Becky Phillips, CPA, of MCM CPAs & Advisors, just did a timely 75-minute webinar on the topic this morning (replay here). [Editor’s note: The interest rate was changed to 1.0% before any loan applications were accepted.]
Here’s our current list:
- SBA’s helpful one-page overview and SBA Borrower Information Sheet (four pages of guidance for borrowers).
- An interactive PDF version of the SBA Paycheck Protection Program Loan Application (much easier to complete than the official form on the SBA site)
- A side-by-side comparison of the features of the Paycheck Protection Program and another SBA loan program, the Economic Injury Disaster Loan (EIDL) program. (Most nonprofits with employees will be more interested in the PPP.)
- A downloadable one-page CNPE Excel worksheet to help you collect and organize your payroll data for 2019. You will need this data to figure out the maximum amount you can apply to borrow under the PPP (which is 2.5 times your average monthly 2019 payroll cost).
- Instructions for completing the CNPE Excel worksheet. You will want to print these out and use them as you complete the worksheet. We expect that your banker will find this worksheet very valuable in processing your loan application.
- Replay of April 1 CNPE webinar, “Nonprofits and the CARES Act”
- PowerPoint deck from Becky Phillips’ April 1 CNPE webinar, “Nonprofits and the CARES ACT”
Two important reminders from yesterday’s message: (1) contact your banker TODAY to make clear your interest in a PPP loan; and (2) get board approval for your loan application as quickly as your articles of incorporation and by-laws allow.
Upcoming COVID-19 CEO Roundtables: At 3 PM this Friday, April 3, 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.
“The List”: CNPE continually curates its useful COVID-19 Nonprofit Resources List.
CNPE Self-Care (and Other-Care) Tip of the Day: If you are healthy enough to do so, DONATE BLOOD. The American Red Cross is desperately short of blood, and the coming days will be beyond challenging at hospitals. Use this link to make an appointment at either a Red Cross Blood Donation Center or at an upcoming drive near you.
Hang in there. The next few weeks will be challenging, but we can do this together. Getting a PPP loan may help you bridge some gaps between now and the end of June. And if you need help, navigating this challenge, let us know.
Ann L. Coffey, CEO
The CNPE office is closed temporarily to help ensure everyone’s health. Our staff is working remotely to help members. Please don’t hesitate to contact us. CNPE Staff Contacts
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