Coronavirus Aid, Relief, and Economic Security (CARES) Act Information for Nonprofits

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Coronavirus Aid, Relief, and Economic Security (CARES) Act  Information for Nonprofits 

The CARES Act, which passed in late March, is a stimulus package that includes significant funding for businesses, hospitals, schools, and social support programs. Among other things, nonprofits are eligible for relief funds that can be used to cover payroll and operational expenses.

In particular, the Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. The loan amounts will be forgiven as long as: 

  • The funds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and 
  • Employee and compensation levels are maintained. 
  • Payroll costs are capped at $100,000 on an annualized basis for each employee. 

When can I apply? 

  • Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. 

  • Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. 

  • Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program. 

Where can I apply? 

  • You can apply through any existing SBA lender or ny federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. Visit www.sba.gov for a list of SBA lenders. 

Who can apply?

  • All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. 
Here is a fact sheet with more information about the PPP > 

Helpful webinars & resources: