SBA loans available now for nonprofit emergency funding in response to the COVID-19 closures. You can apply for up to $2M at an interest rate at 2.75%.
Many nonprofits are struggling with finding resources to cover gaps in their funding. In some cases, we are waiting to hear from funders on a decision to continue funding. In other cases, we have no ability to earn revenue. While we wait for answers and release and deployment of other resources, we are left questioning how we can find additional cash to continue paying employees, facilities, finance other debt, etc. The SBA (Small Business Administration) has released a large pool of funds. Nonprofits are eligible for this funding.
From the SBA website that recaps the nature of the loans:
If your business or private, nonprofit organization has suffered physical damage or your small business or private, nonprofit organization of any size has sustained economic injury after a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration. If your business—regardless of size—is located in the declared disaster area, you may apply for a long-term, low-interest loan to repair or replace damaged property.https://disasterloan.sba.gov/ela/Information/FactSheetBusinesses
Even if your property was not damaged and you are a small business owner or a private, nonprofit organization, you may apply for a working capital loan from the SBA to relieve the economic injury caused by the disaster.https://disasterloan.sba.gov/ela/Information/FactSheetBusinesses
For more information, here is a 3-Step application for SBA loans available for nonprofit emergency funding.
Most importantly, loans up to $2 million will be offered, and can be used to pay fixed debts, payroll, accounts payable or other bills that can’t be paid due to the disaster’s impact. Repayment terms can be up to 30 years.
Collateral is not required, however, if assets that can be collateralized exist, it is possible that will be required to process the loans.
In addition to the SBA lending program, here is a list of additional business relief programs.
The application process can be overwhelming. If you need help filling out this paperwork, reach out to us.
Do You Struggle to Make Sense of Your Financial Statements?
Get our FREE GUIDE to nonprofit financial reports, featuring illustrations, annotations, and insights to help you better understand your organization's finances.Get the free guide!