Dear Colleagues,
The Small Business Administration (SBA) has released a sample application for the Paycheck Protection Program (“PPP”). The application process will open this Friday, April 3rd. Please note, the actual application cannot be submitted until April 3; you may use the sample application in the interim to get yourself ready to formally apply this Friday.
To help you navigate this process, Prizmah is sharing resources and will be offering a webinar where you can ask questions. The webinar, Q&A Session - SBA Loan/Paycheck Protection Program, will be held Friday, April 3rd at 12pm ET / 9am PT – we will be joined by a member of the JFNA team that is leading the work on navigating this process where we answer questions about the application process.
As a reminder, the PPP is the $349 billion loan program created by the CARES Act to help you retain employees during the current COVID-19 related economic crisis. The PPP is administered by the SBA and authorized for small businesses and non-profits across the country who employ 500 or fewer individuals. If you are able to retain your staff and their pre-crisis pay rates, your loan may be forgiven up to 100%.
If you are planning to apply for this program, we recommend you do so as quickly as possible – the PPP is a first-come, first-served program. While the application period does not officially close until June 30, we anticipate funds will run out much earlier than that.
Here are some important next steps to begin preparing to apply:
- Review your by-laws to see if board approval is needed to apply for a loan. In the likely event that you will need approval, here is a sample letter to send to you board to solicit approval by e-mail prior to the opening of the application process.
- Link to Sample Loan Application
- Link to SBA Information Page
- Link to PPP Information Sheet prepared by Jewish Federations of North America (JFNA)
- Link to JFNA payroll and loan forgiveness calculation template
Remember that if you lay off personnel or reduce their hours between now and June 30, a proportionate amount of the loan will not be forgiven and will remain a liability that needs to be paid back.
As a reminder, if you have access to financial professionals and/or legal counsel who are already familiar with your organization, you may wish to consult with them in completing this application. If you have questions you would like to submit in advance of this webinar, please send them to [email protected].
We appreciate the support of our partners at JFNA and the Jewish United Fund in Chicago who have shared information and resources in preparing this information.
Thank you,
Elissa Maier, Chief Operating Officer and Dan Perla, Senior Director, Catalyzing Resources
