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New Paycheck Protection Program (PPP) loan funding now available

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Updates from Minnesota Council of Nonprofits

New Paycheck Protection Program (PPP) loan funding now available

As you know, many nonprofits were shut out of the first round of the Paycheck Protection Program (PPP) loans. The good news is that Congress has passed an additional $310 billion for the PPP and the President signed it into law today.

The even better news: $60 billion of that is earmarked for smaller lenders and $30 billion will go to the community development financial institutions (CDFIs) and small lenders with less than $10 billion in assets. The bad news: It is widely expected that the $310 billion will be gone in less than a week, though the $60 billion carved out may last longer. We are hopeful that this carve out will allow more nonprofits to access these loans, which have potential to be forgiven.

Quick Guidance for Nonprofits on the PPP and EIDL

  • If you’ve already applied for a PPP loan through an SBA lender but have not been approved yet: Check with your lender to see if they are maintaining a queue of applications during the lapse or if you will need to reapply when the renewed funding comes through.
  • If you have not applied yet for a PPP loan through an SBA lender: Have the application form filled out and your documentation ready to provide to your lender. If you have an existing relationship with an SBA lender, you should go to that lender first once the program reopens, but be prepared to try multiple lenders.

At MCN, the policy team continues to be in close (virtual!) contact with state leaders and Minnesota’s congressional delegation to ensure they understand the needs and concerns of nonprofits right now. Most urgently, we are highlighting issues of unemployment insurance and reimbursing employers with our federal leaders, and urging them to increase federal support for these employers from 50 to 100 percent.

Upcoming Virtual Events from Minnesota Council of Nonprofits to Help you Stay Connected

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