Different types of nonprofits have different size requirements for the PPP. If a stakeholder is in the process of any kind of criminal proceedings, from arraignment to parole, it will likely disqualify your organization. If a stakeholder was convicted of a financial-related felony in the past five years your organization could be ineligible. One exception is delinquencies or defaults on federal student loans. And past defaults on federal loans will also disqualify you. If your nonprofit or a stakeholder is currently delinquent on a federal loan, your organization won’t qualify. All stakeholders with more than a 20% share in your organization must be US citizens or permanent residents. If this tops 500 or your industry’s size requirements, you’re ineligible. With the exception of the hospitality and restaurant industry, the SBA considers your affiliate’s employees when calculating your business size. Affiliation with another organization.Tribal businesses, as described in section 31(b)(2)(C) of the Small Business Act more info buttonĬompare What can disqualify a nonprofit organization?Įven if your organization meets the right tax exemption and size requirements, there are a few factors that could disqualify you from getting these loans.Other 501(c) organizations with 300 employees or fewer - excluding 501(c)(4) organizations.501(c)(6) organizations that aren’t involved in lobbying or political activity.The following nonprofits are eligible to apply for the Paycheck Protection Program: Types of nonprofits that qualified for Paycheck Protection Loans Houses of worship that meet 501(c)(3) criteria but aren’t registered.Tribal businesses, as described in section 31(b)(2)(C) of the Small Business Act.501(e) cooperative hospital service organizations.501(d) religious nonprofit organizations.The following nonprofits are eligible to apply for an Economic Injury Disaster Loan: Types of nonprofits that qualify for Economic Injury Disaster Loans If your nonprofit is affiliated with a larger organization, you’re required to include that organization’s employees with your employee count - with the exception of nonprofits in the hospitality and restaurant industry, which are exempt from the affiliate rule. If your industry isn’t listed on the SBA’s website, you must meet the 500-employee limit. You also need to either have no more than 500 employees or meet SBA size requirements for your industry. Generally, you must be a registered nonprofit to qualify for these SBA loans. What types of nonprofit organizations qualify? If you borrowed a PPP loan, you can apply for PPP loan forgiveness through your lender, although not every lender has begun to accept applications for this round of funding. You can find one on our guide to lenders currently offerings PPP loans. You can apply for a PPP loan from an SBA-approved lender. This round of funding ends on May 31, 2021, so get your application in as soon as you can. If you’ve already received a loan, you might be eligible to apply for a Second Draw PPP loan. The PPP is a low-interest loan program that offers 2.5 times your monthly payroll costs, with the option to qualify for up to 100% forgiveness depending on how you spend the funds. Due to the high volume of applications, processing times vary and it may take a few weeks or longer to receive funding. Generally, it can take anywhere between 20 minutes to just over an hour to complete. These loans are only available directly through the SBA - you can’t apply through a bank or other lender. You can apply for an Economic Injury Disaster Loan by filling out a short application on the SBA disaster loan website. And after another two weeks, it will be available to all eligible nonprofits and small businesses. This time it’s only $5,000 - and will roll out to businesses and nonprofits that saw a 50% decrease in revenue with no more than 10 employees.Īfter two weeks, it will become available to all businesses or nonprofits with 10 employees or fewer. The America Rescue Plan Act also relaunched the EIDL targeted grant.
Terms can stretch as long as 30 years, depending on your organization’s ability to repay. The interest rate for the EIDL is 2.75% for nonprofits. The EIDL program originally offered loans up to $2 million based on your operating expenses - but that has since been lowered to just $150,000. Nonprofits can qualify for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans. Which SBA loans can nonprofits qualify for? And you’ll be competing with thousands of businesses for a limited amount of funds. But there are still restrictions on who can qualify. The Coronavirus Aid, Relief and Economic Security (CARES) Act opened up eligibility for SBA loans to more businesses, including nonprofits.
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