Over the last few days Community Foundation of North Louisiana has participated in several national webinars to understand the benefits available for nonprofit organizations as a result of the COVID-19 Pandemic. The following is a summary of the information we have gathered and should be used merely as informational and not a legal source. Please consult your CPA as soon as possible to discuss which, if any, of the provisions you should utilize. Please note that while some benefits may be used together, some may not.
Please do not hesitate to reach out to us during this difficult time. Thank you for all you do for this community!
CEO, Community Foundation of North Louisiana
Federal Cares Act – Signed into law on March 27, 2020
Major Provisions for Nonprofits
Delay of Payroll Tax Remittance
- Employers may delay payroll taxes (Social Security) between now and before 1/1/21.
- 50% due 12/31/21; and
- 50% due 12/31/22.
- Does not apply to employers that have loans forgiven under Paycheck Protection Program.
Paycheck Protection Program
- Loans for small businesses and 501(c)3 organizations
- Must have less than 500 employees;
- Loans equal to the lessor of 2 ½ months of average payroll or $10 million;
- No collateral or personal guarantee required;
- Loan is converted to a grant (or forgiven) for:
- amounts spent on payroll, rent, interest on mortgage and utilities for 8 weeks after origination.
- Loan forgiveness reduced if number of employees reduced.
- Open on Friday April 3rd. Talk to your CPA and banker now if you plan to apply.
Employee Retention Credit
- Employers fully or partially shutdown or with 50% drop in gross receipts in a quarter compared to prior year.
- Refundable tax credit for 50% of wages (including health plan) up to $10,000 per employee.
- Number of Employees
- If 100 or more employees applies to employees not providing services.
- If 100 or less employees will apply to all.
- Not eligible if you receive a Paycheck Protection Program Loan.
SBA Economic Injury Disaster Loans
- Nonprofits with less than 500 employees.
- Up to $2 million working capital loan at 2.75% (3.75% for profit businesses).
- Payments deferred up to a year.
- Based on credit scores; no tax returns required.
- Up to $200,000 without a personal guarantee.
- $10,000 emergency grant within 3 days that does not have to be repaid.
- Interacts with Paycheck Protection Program.
Paid Sick and FMLA Leave
- Employers with less than 500 employees required to provide 10 days of paid sick leave if related to COVID-19.
- Not available if employee can telework.
For more information: https://www.uschamber.com/co/