On Demand! YPTC is not a CPA firm. It has been an honor to support nonprofits as they navigate PPP throughout 2020. • Includes full-time and part-time staff • Organizations whose staff is seasonal can calculate their number of employees based on a February – June 2019 time period -Eligibility criteria and guidance on applying for the new round of PPP loans About 450 received between $5 and $10 million. If you run one of the nonprofits that received 3.7 percent of all loans made under this program, there are several points you need to be aware of and some of them are time-sensitive. 2020 and 2021 PPP Loans: Retroactive Changes to the Forgiveness Application, Allowable Expenses and Other Changes Repeals the requirement that PPP borrowers deduct the amount of any EIDL advance from their PPP forgiveness amount. In this webinar, we will cover: We encourage you to check out the SBA’s PPP website as they release new guidance and watch for updates from your lender. portalId: "4789682", While we have begun to slow down some of our interactive offerings, we will keep the Toolbox available to you throughout 2021.You can read more in our latest PPP email.. Congress has passed the Economic Aid Act that streamlines the forgiveness process for borrowers … about PPP loan forgiveness and other pandemic relief options. Creates a simplified forgiveness application process for loans of $150,000 or less, Includes a description of the number of employees the borrower was able to retain because of the loan, Includes the estimated total amount of the loan spent on payroll costs. The bill also extends the increased limits on deductible charitable contributions for individuals who itemize and for corporations for one year. PPP – Eligible Nonprofits • A nonprofit organization exempt under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code that has 500 employees or less. •For nonprofits, PPP eligibility expanded to include most (but not all) 501(c)(6) organizations, housing cooperatives, direct marketing organizations, and certain other organizations; previously included 501(c)(3) and 501(c)(19) organizations. Relief for Reimbursing Employers: Extends until 3/14/2021 the 50% federal coverage of the costs of self-insured “reimbursable” employers. formId: "d3dfc2e3-3674-4b26-9052-2c2ac700caf3" Here are the key issues the bill addresses for nonprofit organizations, their employees, and donors: As with PPP1, the costs eligible for loan forgiveness in PPP2 include payroll, rent, covered mortgage interest, and utilities. PPP2 also makes the forgivable loans available to Sec. It is estimated that 40 percent of eligible nonprofits received one of these lifelines. REGISTER NOW! Federal Disaster Loans for Businesses, Private Nonprofits, Homeowners, and Renters. Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines. -Frequently asked questions (and answers!) The maximum loan amount has been cut from $10 million in the first round to the previously mentioned $2 million maximum. On December 20, 2020, both chambers of Congress announced that they had agreed on a new stimulus bill, which the President is expected to sign into law. Pursuant to the Economic Aid Act, the latest round of PPP Loans rolled out to eligible borrowers to pay payroll costs, including benefits during the covered period as set forth in the regulations. An organization’s operating costs are covered, such as software and cloud computing services and accounting needs. -Ways to maximize PPP loan forgiveness To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either eight or 24 weeks—the same parameters PPP1 had when it stopped accepting applications in August. Specifically, a borrower can receive forgiveness if a borrower signs and submits to the lender a certification that: The SBA must create the simplified application form within 24 days of the bill’s enactment and may not require additional materials unless necessary to substantiate revenue loss requirements or satisfy relevant statutory or regulatory requirements. In this webinar we will discuss applying for new Paycheck Protection Program (PPP) loans and how to maximize PPP loan forgiveness. On December 20, 2020, both chambers of Congress announced. We are not lawyers and do not pretend to be. Charitable Giving Incentives: Reestablishes the $300 above-the-line deduction for 2021 and applies a $600 deduction for couples filing jointly in 2021; imposes a penalty for overstating contributions. The Paycheck Protection Program (PPP) has provided nearly 4.9 million loans to American businesses. Please note that this article is provided for informational purposes only. $16.5 million Initiative for BIPOC Arts & Culture Organizations Launched in Chicago. Nearly 47,000 New York businesses got more than $150,000 in PPP loans, including a number of nonprofits. Staying Afloat: The Latest on PPP and Other Pandemic Relief Options for Nonprofits. According to the SBA, First Draw PPP Loans are for borrowers who had not received a PPP loan before last Aug. 8. Generally, no. Direct Payments of $600 for individuals making less than $75,000 & $1,200 for married couples making less than $150,000, plus $600 per dependent. PPP2 also makes the following potentially forgivable:Â. Second Draw PPP loans are for eligible small businesses with 300 employees or fewer that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, as well as demonstrating at least a 25% reduction in gross receipts … 3507 and 750 CA (for purposes of PPP only) CONTROL NO. For example, if the borrower is using a 24-week Covered Period and received its PPP loan 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. In 2021, nonprofits may be eligible to apply for a new round of PPP Loans. hbspt.forms.create({ Join YPTC as we kick off the new year with our latest Staying Afloat webinar. Hosted by Network for Good- Staying Afloat: The Latest on PPP & Other Pandemic Relief Options, Behind the Numbers: Accounting and Finance Tips, Getting Up to Speed with QuickBooks Online: Tips and Tricks for Nonprofit Users, On Demand! The size standard for “religious organizations” is a monetary cap on annual receipts rather than a cap based on number of employees . Plus, now is the time to begin finalizing your PPP loan forgiveness applications for funds received in 2020. that they had agreed on a new stimulus bill, which the President is expected to sign into law. PPP borrowers with NAICS codes starting with 72 (hotels and restaurants) can get up to 3.5 times their average monthly payroll costs, again subject to a $2 million maximum. Chicago’s diverse arts & culture community invited to submit letter of interest by Jan. 22. Getting Up to Speed with QuickBooks Online: Tips and Tricks for Nonprofit Users. 1 The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or (2) if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day) Covered Period. Second round of PPP loans to help struggling small businesses and nonprofits survive Businesses that did not receive PPP Loans in the first round have priority in the second round. 501(c)(6) business leagues, such as chambers of commerce, visitors’ bureaus, etc., and “destination marketing organizations” (as defined in the Act), provided they have 300 or fewer employees and do not receive more than 15% of receipts from lobbying. Join YPTC as we kick off the new year with our latest Staying Afloat webinar. highlights changes in the PPP law that impact nonprofits, including citations to the law for additional detail. Produced over the weekend by the team at QuickBooks University and reviewed by INSIDE CHARITY these utilities make sense of what is arguably the next important step nonprofits face as … Plus, now is the time to begin finalizing your PPP loan forgiveness applications for funds received in 2020. Nonprofits are eligible for PPP if they have either: 1) 500 employees or less, or 2) no more employees than the size standard established by the SBA for their industry. ... All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with PPP loan approvals resume for some small firms, nonprofits The deadline to receive a PPP loan under the new stimulus package is March 31, the U.S. Small Business Administration announced. In Texas, Your Part-Time Controller, LLC, Accounting Services provided through an affiliation agreement with E. Fraint, LLC. According to the SBA, First Draw PPP loans are for borrowers who had not received a PPP loan before last Aug. 8. }); In 2021, nonprofits may be eligible to apply for a new round of PPP Loans. Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations. -The latest changes to the PPP loan forgiveness rules and how it could affect your application The lobbying activities must comprise no more than 15% of the organization’s total activities and have cost no more than $1 million during the most recent tax year that ended before Feb. 15, 2020. Â. Please consult your legal and accounting experts, as well as government websites, and rely on them as the final authority. On Demand Webinar: Are You In The Dark About Your Financial Situation? : 5000-20074 EFFECTIVE: January 6, 2021 The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Economic Aid Act”) was signed into law by the President on December 27, 2020, extending SBA’s authority to Borrowers are required to retain relevant records related to employment for four years and other records for three years, as the SBA may review and audit these loans to check for fraud. Schumer commits to expanding PPP eligibility for larger nonprofits, political advocacy orgs With slim Democratic control of the Senate, efforts to expand federal relief for nonprofits have greater odds of succeeding. Learn More. •The PPP provides greater flexibility for seasonal employees. PPP Loan Forgiveness Application, Template & Video for Nonprofits provides charitable execs clarification and the tools they need to turn a portion (or all) of their PPP Loan into a grant. Forgiveness: Expands forgivable expenses to include the costs of PPE, workplace modifications, short-form approval of loans of $150,000 or less. This article represents our understanding of the situation at the time it was written. YPTC Helps Nonprofit Executives Sleep At Night, Now In Delaware! Most recent updates below: Friday 2/12/2021. Nonprofits and the Paycheck Protection Program (PPP) New eligibility requirements and program guidance in 2021. PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year before the loan or the calendar year, the same as with PPP1. Coronavirus Relief Fund: Extended to 12/31/2021.  Provides $20 billion for additional $10,000 grants; repeals deduction of EIDL grants from the amount of loan forgiveness. PPP Reforms.  Provides $15 billion dedicated to aiding performance venues, independent movie theaters, and cultural institutions. Second Draw PPP Loans are for eligible small businesses with 300 employees or fewer that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, as well as demonstrating at least a 25% reduction in gross receipts … 9 Email Marketing Tips To Increase Your Conversion Rate, PPP Round 2 for Nonprofits & The December Stimulus Bill, Turn Website Visitors into Email Subscribers: The Benefits of Email Marketing, Maximize Your Call to Action for a Better Conversion Rate. Includes set-asides to support first- and second-time PPP borrowers with 10 or fewer employees, first-time PPP borrowers that have recently been made eligible, and for loans made by community lenders. Here are the key issues the bill addresses for nonprofit organizations, their employees, and donors: NOTE: Nonprofit “gross receipt” defined using the tax-law definition and not the arbitrary definition seen in earlier drafts. Nonprofit and for-profit organizations that received Paycheck Protection Program loans could unexpectedly find themselves confronting the “single audit” requirement for the first time, even though PPP loans are supposedly exempt.