The CARES Act & More: Info for Nonprofits and Small Businesses
April 1, 2020
NONPROFIT & SMALL BUSINESS SUPPORT
West Harlem Development Corporation recognizes the strain on businesses caused by the uncertainty surrounding the COVID-19 pandemic. We will continue to pass on relevant resources to help guide our fellow nonprofits and small businesses through it all.
As you develop your organization’s response, particularly for multi-service organizations, consider organizing your plan specific to the following primary areas of work:
- Clients Served – assessing vulnerability and establishing prioritization
- Staff – identifying essential roles, HR policy, internal communication
- Facilities and Operations – safety, signage, supplies, and protocol modification
- Financial – cash flow/payroll, performance implications, emergency expenses
A highlight of some of the business-related elements of the Coronavirus Aid, Relief, and Economic Security (CARES) Act is below.
NYC Comptroller Scott M. Stringer has compiled a thorough list of information for business owners and M/WBEs HERE. The U.S. Chamber of Commerce’s Guide helps nonprofits, small businesses and self-employed individuals check eligibility and prepare to file for a loan. The informational resource compiled by Candid is updated regularly. Another useful resource is Seyfarth’s Nonprofit Guide to the CARES Act.
- Paycheck Protection Program: Loans to 501(c)(3) and 501(c)(19) tax-exempt organizations with up to 500 employees. These low-interest Small Business Administration (SBA) loans, generally for two and a half months of average payroll costs (limits apply), may be forgiven entirely if the borrower limits salary reductions to no more than 25% and maintains staffing levels for eight weeks after getting the loan. To apply for loan forgiveness visit PPP Loan Forgiveness Application.
- Economic Injury Disaster Loans (EIDL): SBA disaster lending program for loans of up to $2 million with interest set at 2.75% for nonprofits (and grants of a quick $10,000). Payments of principal and interest may be deferred for up to four years.
- $10,000 Emergency Grants: An EIDL applicant may request that up to $10,000 of the amount it has applied for be given as a grant, which the SBA is required to pay within three days after the SBA receives the EIDL application provided that the applicant certifies, under the penalty of perjury, that it is an eligible entity, i.e., an ESOP, small agricultural cooperative, or private nonprofit organization.
- New York Forward Loan Fund: NYS has launched a new loan program for small businesses, non-profits, and small landlords who have not received funds from PPP or EIDL. The loan maximum is the lesser of $100,000 or average revenues in any 3-month period from 2019 or Q1 of 2020. The loans will carry a 3% interest (or 2% for non profits) and amortize in 5 years. Repayment includes an interest-only period during the first 12 months.
- SBA Debt Relief Program: The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
- SBA Express Bridge Loan Program: Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
- Tax Credits for Coronavirus-Related Paid Leave: refundable tax credits to reimburse employers for the costs of providing paid sick leave and paid family and medical leave to employees unable to work because of the coronavirus (COVID-19).
- Reimbursements for “Reimbursable Employers”: This benefit is for nonprofits that have elected to be “reimbursable employers” (you are probably not one of these, and if you are, you know who you are) for purposes of state unemployment insurance taxes.
- Payroll Tax Credit: The employee retention payroll tax credit is a benefit for organizations that don’t get Paycheck Protection Program loans.
- Industry Stabilization Fund: Loans to nonprofits with 500 to 10,000 employees (e.g., hospitals and universities) at 2% interest and no payments due for the first six months.
Because some small businesses have started to feel an impact related to coronavirus, the NYC Mayor announced this past weekend that there will be assistance to small businesses to help them adapt to changing customer behavior. Businesses may qualify for low-interest loans and employee retention grants:
- MBP Gale Brewer’s List of Grants for Freelancers
- WeWork For Good Initiative
- Artist Relief
- Facebook Small Business Grants Program
- NYC Impact Fund – for organizations to engage volunteers who help deliver essential services to residents throughout the COVID-19 crisis
- Documentary Freelancer Relief Fund
- Booz Allen Foundation’s Innovation Fund
- New York Women’s Foundation’s COVID-19 Response & Recovery Fund – for current and former grantee partners
- Downtown Alliance’s Small Business Rental Assistance Grant
- ICA’s Business Resilience Program “Keep The Doors Open”
- Humanities New York CARES Emergency Relief Grant – due May 15, 2020
- Verizon Small Business Recovery Fund
- NYFA Maurice Sendak Emergency Relief Fund – for children’s picture book artists and writers
- United Way COVID-19 Community Fund
- NELP COVID-19 Small Business Legal Clinic – Pro bono legal consultations to help entrepreneurs in New York City determine the best path forward for their small businesses in these particularly challenging times
- Nonprofit Finance Fund – (Part of New York Community Trust’s Fund listed above) No-interest loans ($100,000 to $3 million) to NYC nonprofit organizations working in human services, with particular interest in those supporting essential healthcare, food delivery, homeless services, workforce development, educational support, and early childhood education, and arts and culture. Full repayment is expected
- Robin Hood’s COVID-19 Relief Fund
- NYC Small Business Continuity Fund Interest Form
- NYC Employee Retention Grant Program
- The Soze Foundation Artist + Activist Relief Fund Waiting List
- Northern Manhattan Emergency Recovery Fund by New York-Presbyterian Hospital
- Businesses with fewer than 100 employees, seeing a decrease in sales up to 25% or more will be eligible for zero interest loans up to $75,000 to help mitigate losses in profit
- The City is also offering eligible small businesses with fewer than five employees a grant to cover 40% of payroll costs for two months to help retain employees.
We will continue to send out information, including on financial assistance, as more details become available.