SBA Economic Injury Disaster Loan Program
You likely have heard about the Small Business Association’s (SBA’s) Economic Injury Disaster Loan Program (7(b)(2)), providing relief for COVID-19 related economic disruptions. However, many nonprofit organizations are questioning if they may be eligible during these trying times.
The answer is, you may be. Private not-for-profit organizations harmed by COVID-19 can apply for this program as long as they are unable to obtain financing from other sources. The interest rate on approved loans up to $2 million is 2.75% and up to 30 years for repayment.
>> Read “Loan Program Now Available to Small Businesses Affected by the Coronavirus”
SBA 7(a) Loan Program Offers Paycheck Protection
SBA 7(a) loans are another viable option not-for-profits can consider for relief. These loans are available to all nonprofits (except for those eligible for payment for items or services furnished under a state plan under Title XIX of the Social Security Act (Medicaid Expenditures). The loan amount is limited to 2.5 times the average monthly payroll. Eligibility criteria includes not employing more than 500 employees, and the organization must have been in operations on February 15, 2020.
Single Audit Extension
The Office of Management and Budget has released a memorandum that, among other things, provides a six-month extension of Single Audit submissions for fiscal year-ends through June 30, 2020.
Accordingly, a June 30, 2019, year-end would be due March 31, 2020, under normal circumstances. The memorandum extends it to September 30, 2020. The extension is automatic; individual recipients and sub-recipients are NOT required to seek approval for the extension but should maintain documentation of the reason for the delayed filing.
Affected organizations should contact their external auditors as soon as possible to discuss any anticipated filing delays. Note there is no extension for filings of 990, 990-EZ or 990-N at this time.
Contact Marie Brilmyer at firstname.lastname@example.org or a member of your service team to discuss this topic further.
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Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.