2021 Paycheck Protection Program: What Reno County nonprofits need to know

2021 Paycheck Protection Program: What Reno County nonprofits need to know

The Small Business Administration has announced a 2021 round of the Paycheck Protection Program (PPP2).

The purpose of PPP2 is make funds available to small businesses (under 300 employees) and nonprofits for the following business expenditures:

  • Payroll costs (at least 60 percent of the PPP2 loan must be spent on payroll)
  • Rent or mortgage interest expense
  • Utilities
  • Certain operations expenditures, property damage, supplier costs and worker protection expenditures

Who qualifies?
The entity must demonstrate a reduction in gross revenues of at last 25 percent in any quarter in 2020 compared to the same quarter in 2019.

Gross revenues

For nonprofits, gross revenues are defined as the total amount the organization received from all sources during its annual accounting period without subtracting any costs or expenses.

Nonprofits can select their quarter in 2020 and compare that quarter to the same quarter for 2019. Be prepared to show documentation to your lender that your organization actually experienced a 25 percent reduction in gross revenue.

However, if you are requesting a loan less than $150,000, you do not need to provide that documentation initially. You will have to provide that documentation when you request forgiveness of the loan.

The organization does not have to show that the reduction in gross revenues has been caused by COVID-19.

If you applied for a Paycheck Protection Program loan in 2020, you are not disqualified from applying for the PPP2 loan. Contact your lender right away to complete the application and provide the documentation required as soon as possible.

For other questions about the loan and application process, contact Hutch CF Chief Operating Officer Dell Marie Shanahan Swearer, dell@hutchcf.org.