PPP & EIDL Loan Information to Charitable Organizations
Here’s what we know as of April 12, 2020:
550,000 loans, worth $141 billion, have been approved under the PPP, according to the Wall Street Journal as of Friday, April 10th.
70% of small businesses have applied for an emergency loan under the PPP, according to the National Federation of Independent Business (there are more than 30 million small businesses in the United States.)
50% of small businesses have applied for relief using the SBA’s Economic Injury Disaster Loan Program (EIDL) for a total of $383 billion in requests. The CARES Act increased funding for this previously existing program by only $17 billion. 4% of small businesses have been approved so far.
Most applicants haven’t received any funding (even if they were approved.) “Money isn’t flowing yet.” says Amanda Ballantyne of the Main Street Alliance.
The number of lenders offering PPP Loans has increased from 1,800 to 4,100 in one week’s time according to the SBA.
The Small Business Administration has launched an online FIND ELIGIBLE LENDERS tool at SBA.gov. We found it to be thorough and easy-to-use.
The banking industry (not the federal government) made the decision to restrict loan offerings to existing customers only.
Several banks have posted an “initial” application vetting form. You may think that you’ve successfully applied only to find out that you must complete a secondary application before the actual loan approval process even starts.
Most banks insist that you apply online and refrain from contacting your local branch officers indicating that your personal banker has little or no influence on your loan request.
Many frustrated applicants have moved to the online lending route and have applied with companies like BoeFly, Kabbage, etc.
W-2 employees vs 1099 independent contractor confusion has finally been sorted out. PPP loan amounts will be calculated based on W-2 PAYROLL ONLY (1099 employee pay cannot be included.)
1099 independent contractor loan application process opened on Friday, April 10th. Like small businesses owners, independent contractors will apply for relief using their banks, credit unions and SBA 7(a) approved lenders.
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Dear Nonprofit Execs & Colleagues in Service,
We are all in the throes of the global pandemic. Charities everywhere are feeling the effects of isolation measures, business shutdowns, travel bans, and markets crashing. InsideCharity is here to make sure receive the information you require to navigate these unprecedented times. We're in direct contact with the Small Business Association (SBA) and Internal Revenue Service (IRS) to provide you real-time updates you need to access CARE Act funding as soon as possible.
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