Perhaps you held off on applying for federal assistance through the CARES Act for your nonprofit early on, thinking you would wait and see how long you could weather the storm. Or perhaps you did apply but you did not qualify for the EIDL Advance funds program (the forgivable portion of the program, which amounted to $1,000 per employee, up to $10,000 total). Although the latest round of EIDL Advance funds has run out, there still is help available to nonprofits through the SBA’s EIDL Loan program. It’s not too late to apply!
Overview of the SBA’s EIDL Loan Program
According to the U.S. Small Business Administration website, the U.S. Small Business Administration is offering all states and territories low-interest federal disaster loans for working capital to small businesses and non-profit organizations of any size suffering substantial economic injury as a result of the Coronavirus (COVID-19).
The purpose of this loan is to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Although the EIDL Advance, if received, is forgiven, the EIDL Loan must be repaid, but the terms are 2.75% for non-profits (3.75% for businesses), and the first payment is deferred one year.
This may be just the boost your organization needs to get you through the next few months.