Greetings Roo friends and fans,
We wanted to provide an update regarding the COVID-19 related Payroll Protection Program (PPP). Many thanks to Propel Nonprofits, the Minnesota Council of Nonprofits and Sunrise Banks for providing the source data for this post.
Who is eligible?
How much money is available and how can it be used?
Which staff members are included?
Loan forgiveness Provisions
Stay strong friends!
We wanted to provide an update regarding the COVID-19 related Payroll Protection Program (PPP). Many thanks to Propel Nonprofits, the Minnesota Council of Nonprofits and Sunrise Banks for providing the source data for this post.
Who is eligible?
- Employers with 500 or fewer employees
- Non-profits (this is significant, as nonprofit employers are not typically eligible for Small Business Association loans (SBA loans)
- Self-employed individuals
How much money is available and how can it be used?
- Organizations can apply for a (forgivable) loan equal to 2.5 times monthly payroll. You can use either option described below to calculate your maximum loan amount.
- Option 1: 12 months average payroll since February 15th or;
- Option 2: 2019 payroll data
- Employers must deduct individual earnings over $100,000
- 75% of the loan must be allocated for payroll expenses.
- Other eligible expenses include employer costs for healthcare, retirement plan contributions, rent and utilities
Which staff members are included?
- Only applies to employees on payroll.
- Independent contractors are not included in agency reporting, but can choose to file individually
- Grant-funded positions are included and do not need to be tracked separately
Loan forgiveness Provisions
- Loans may be 100% forgiven provided employers keep staff on payroll through June 30th
- Must provide documentation to lender by June 30th
- Loan forgiveness will be reduced if employers reduce payroll or headcount through June 30th
- Should a portion of the loan not be forgiven, employers have 2 years to repay the loan at an interest rate of 1%
Stay strong friends!