Issues With Accessing PPP? Four Ways to Better Navigate Round 2

As the world continues to recover from the impact of the COVID-19 pandemic, many organizations are still trying to figure out ways to stay afloat. This pandemic has changed the landscape of not only business but also philanthropic activities. Restaurants have been forced to close or rely on takeout, construction projects have been halted, stadiums are empty, and countless events have been canceled. Many nonprofits have had to postpone or cancel their events, and are scrambling to find new ways to raise funds to help support their initiatives. Like other businesses, many nonprofits have turned to government relief to help keep their organizations operational and keep their employees on payroll.

On March 27, 2020, the CARES Act was passed, which provides significant funding for governments, businesses, hospitals, schools, and social support programs, among many other things. Part of the CARES Act was PPP (Paycheck Protection Program), an Emergency loan program for small businesses and nonprofits to secure funds to pay staff and operating costs for 2 months as well as secure full loan forgiveness under certain circumstances.

While many nonprofits were qualified to receive a portion of the $349 billion distributed through the program, many have failed to do so—facing either application backlogging, technical issues with banks, or the lack of access due to funds depleting in less than two weeks.

As of April 27, Congress has approved a new bill that replenishes PPP with an additional $310 billion and resumed accepting loan applications, in hopes to keep workers employed during this economic downturn. For Round 2 of PPP, lenders are working to better prepare to get money out of the door and handle backlogged applications.

If your organization was not able to secure PPP during the first bill, here are four ways to better navigate Round 2:

1. Reach out to your local lender to find out if they are participating in the program and can help you receive the relief.

2. Ensure you have your lender’s application forms and supporting documents in order.

3. Consult your networks for those who have already applied and been granted loans to get pointers, and check with your local community development financial institutions (CDFIs) to see if they have been certified as lenders under this program.

4. Check your state associations of nonprofits for guidance and join while you are there.

PPP is only available to nonprofits that:

1. Were in operation on February 15, 2020

2. Are registered 501(c)(3) charities or 501(c)(19) veteran organizations and

3. Have fewer than 500 employees (which includes full and part-time employees and employees of “affiliates”) or meet the SBA employee-based size standards for the industry in which they operate

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