Note: This is the opinion of Amy Little and may not be the right fit for every nonprofit
Payroll Protection Plan
Before I dive into a recommended decision-making process for applying for any SBA loan, I wanted to share what I learned about the SBA 7(a) application, commonly referred to as the Payroll Protection Plan (PPP). This is the loan that we field the most questions about.
Click here to view the sample application your bank should have available to you right now. If you plan to apply, contact your bank TODAY for the official form. Please note that banks can take your applications starting TODAY but they won’t be able to submit them until the SBA opens up the application process on their end, which will be as early as Friday April 3. You’ll want to have the sample application open while you review the tips I learned from my lender, found here.
Is an SBA Loan Right for You?
The decision of whether or not to apply for any loan through the SBA may or may not be your decision as a nonprofit executive. There are many things to consider and certain individuals who should probably be involved in the decision making process: board members, finance committee, finance staff (if applicable), or your executive committee.
I hope that this information is helpful to all nonprofits, no matter the size, but I want to be clear that this is also drawn from my own experience in a medium sized organization.
I don’t have a specific process laid out and it’s different for every organization. With that, here are a few steps that I recommend:
Applying for loans are not decisions that any one of us take lightly. It is certainly not a decision that any one of us should make alone. I think the most important piece of the decision making process, aside from engaging your board leadership, is to know where you stand right now. It is worth your time to spend a little extra time analyzing your finances so you and your board are making an educated decision.
In closing, we have been collecting a lot of different resources on the various loan options available to you and resources for support.
Here are just a few of our favorites:
We hope to host a webinar with a lender or someone from the SBA to lay out your options and answer any questions. We are being told that applications for the PPP SBA 7(a) loan with forgiveness will open up as early as April 3. We will keep you informed as we learn more.
In closing, I hope this information is helpful to you. We are so appreciative of your efforts to support our communities. I cannot imagine where those most impacted by this pandemic would be right now without you.
As always, please reach out if there are resources or topics we can provide for you at this time. Now more than ever we are living out our mission to educate, advocate and collaborate in support of stronger nonprofits.
We are all in this together.
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