Updates

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Forgiveness Application for PPP Loans of less than $50,000

The SBA released a streamlined Forgiveness Application for PPP Loans of less than $50,000. A copy of the new application (IRS Form 3508S) can be found here. If you have questions, please contact Jeff Femrite at (608) 692-0310 or jfemrite@scholznonprofitlaw.com

Arts Organizations

Don’t miss out on this opportunity. The COVID-19 Cultural Organization Grant Program supports nonprofit cultural organizations whose operations have been negatively affected by COVID-19.  Find more information about the grant from the DOA.

Tips for Those Seeking Unemployment and the additional $300 payment:

When filing for unemployment now in WI, an applicant will be asked to agree to the following: If you accept the $300 additional payment, you may have to pay it back if another stimulus program is enacted.

Don’t be alarmed. Applications should still answer “YES.” This language is included in the very unlikely event that Congress renews the FPUC $600 payments and makes it retroactive. Then it would be an accounting issue and could be sorted out with the State.

SBA Extends Application Deadline for Loans Under Paycheck Protection Program (PPP)

The deadline for small businesses and nonprofits to apply for PPP loans has been extended to Saturday, August 8, 2020. SBA still has $130 Billion to loan, and local lenders are taking applications. Please contact Jeff Femrite at (608) 692-0310 or jfemrite@scholznonprofitlaw.com with questions.

Last day to apply for Paycheck Protection Program Loans (PPP)

June 30, 2020 is the last day organizations and businesses are allowed to apply for Paycheck Protection Program Loans (PPP). Nearly all businesses and organizations are eligible to take advantage of this program. Please contact Jeff Femrite at (608) 692-0310 or jfemrite@scholznonprofitlaw.com with questions.

There will be a webinar on Tuesday, June 30, 2020, on the EZ Form for PPP Loan Forgiveness.

New SBA Loan Forgiveness Application and Creation of an EZ Form

SBA revised and streamlined the original PPP Loan Forgiveness Application, reducing its size to 5 pages.

In addition, SBA created a new EZ Loan Forgiveness Application for borrowers that (i) are self-employed, or (ii) did not reduce wages by more than 25%, and did not reduce employee hours, or (iii) experienced reductions in business because of health directives related to COVID-19, and did not reduce wages by more than 25%. If you fail to meet one of the forgoing 3 options, you will need to complete the full PPP Loan Forgiveness Application. You can find it here. Stay tuned for more advice next week.

Return of EIDL Loans

The Small Business Administration has re-opened the EIDL portal. Organizations struggling financially because of COVID-19 should consider applying for EIDL. Organizations can borrow up to $2 million, over 30 years, at 3.75% per annum (2.75% per annum for non-profits). Loan funds can be used for working capital, to pay reasonable business expenses. Up to $10,000 of an EIDL loan is a non-refundable grant (although the grant amount will be offset against PPP loan forgiveness). Please reach out with questions to Jeff Femrite at (608) 692-0310 or jfemrite@scholznonprofitlaw.com

Important Update for organizations that received both a PPP loan and an EIDL

With the release of the Loan Forgiveness Application by the SBA, it is now clear that if your organization received both a PPP and an EIDL (regardless of when that EIDL was funded), you are going to need to subtract the EIDL grant amount from the PPP forgiveness. Tune in on Thursday for more details.

Washington Post Reports SBA Slashing EIDL Limit To $150,000

 The Washington Post reported this morning (Thursday, May 7, 2020) that SBA’s EIDL program has been so overwhelmed by demand, it has reduced the maximum available loan size from $2,000,000 to $150,000. The report indicated SBA has a backlog of “millions of applications,” and has been “so overwhelmed by demand that it is now allowing only agricultural interests to submit applications.” SBA continues to work thorough existing applications. If the EIDL loan portal opens for non-agriculture organizations, we will post an update here.

Update on EIDL Online Application

The EIDL program (run through the SBA online portal) recently received an additional $60 billion in funding from Congress. At this time, we are aware that the SBA has not re-activated the online EIDL application at SBA.gov. It appears SBA is working through an existing back-log of applications before reopening the application process. We will keep an eye on it and let you know if it opens up.

PPP Update

If you’re still thinking of applying for the Paycheck Protection Program, do not wait. Apply immediately in case the program receives more funding. Here’s an updated PPP checklist.

Wisconsin Work-Share Program

Wisconsin has a short-time compensation program called Wisconsin’s Work-Share Program. A work-share program provides employees with partial unemployment insurance (UI) benefits when their employer has temporarily reduced worker hours. The employees with reduced hours receive a pro-rated UI benefit to offset this reduction in paid wages, implemented by the employer in lieu of laying off workers. For more details read here.

Q&A on Program Details Available

Here is a compilation of frequent questions about the government programs offering financial support to nonprofits, during this COVID crisis. We will update them as we receive new guidance and see issues of concern. Check back often.

The updates and guidance available on this website are intended for informational purposes only and not intended as legal advice. Different facts, information or developments in the law may affect the information provided here.