Top 10 things Nonprofits need to know about PPP loans
(as of May 18, 2020 anyway)…
10) SBA came out with the PPP forgiveness application late Friday, which provides some of the guidance that we’ve been waiting for since the program started in late March. Plan to watch our webinar on Tuesday for more details.
9) The application instructions provide for some flexibility on timing of the pay periods. This will be discussed during tomorrow’s webinar.
8) “Paid and incurred” has become “paid or incurred”, for certain expenses anyway. Also to be discussed in our webinar.
7) Today May 18th is the last day to return your PPP loan funds if you feel you really didn’t meet the certifications surrounding “need” and “uncertainties”.
6) Last week, the SBA came out with a safe harbor for PPP loans under $2 million surrounding the liquidity concern brought about by SBA FAQs #31 and #37. $2M also happens to be the threshold at which SBA plans to audit PPP loans (and under $2M as determined appropriate). SBA also lightened the language a bit on what happens when they determine you shouldn’t have received a PPP loan (i.e. it won’t be looked at criminally).
5) Although this news (in #6) does alleviate some fears and unease many were having, we do still suggest writing up your organization’s impact statement, as discussed in our May 11th webinar and May 7th blog post.
4) If you haven’t applied yet, there are still PPP funds available (but likely not for long). Organizations exempt under 501(c)(3) and 501(c)(19) are eligible, including religious organizations.
3) Organizations that have certain salaries covered by grant funding need to be careful to not use the same costs for grant reimbursements and PPP loan forgiveness, unless they have approval. Communication with your grantors is key.
2) We put on an informative nonprofit webinar on May 11 that covered some of the topics above plus other non-PPP topics such as HR/employee-related relief programs, regulatory compliance topics, and IRS updates. The recording is available on our events page on our website if you missed it. Visit our COVID Resource Center for the recording.
1) BB is putting on a webinar focusing on PPP loan forgiveness, in case you didn’t pick up on that earlier. Plan to join members of BB’s Covid-19 team at noon on Tuesday May 19th. Visit our events page on our website to register.
As always feel free to reach out to us if you have questions. You can reach Anna Lovegren, CPA, at alovegren@myboyum.com or Tiffany Shermak, CPA, at tshermak@myboyum.com