Serving Nonprofits. Strengthening West Virginia.

Federal Relief for Nonprofits: A Breakdown of Options and Resources

The SBA has announced the Loan Forgiveness Application is now available for those organizations that received funding. Additionally, the SBA and the Treasury have released additional details for PPP Forgiveness.

Economic Injury Disaster Loans (EIDL) & Advances Update: The SBA has announced that they are NOW ABLE TO ACCEPT new applications at this time for the EIDL COVID-19 related assistance program, including EIDL Advances. Find more information HERE.

Previous EIDL & Advances Status Update: The SBA has announced that if you submitted an application, received correspondence from them, and have a loan number that begins with a “3,” you are in the queue and your patience is appreciated.  If you would like to further inquire about the process and understand what to expect next you should contact the Office of Disaster Assistance 24/7 Customer Service line at 800-659-2955. 

With all of the constantly evolving information out there on federal assistance options for nonprofits, it’s easy to feel confused and overwhelmed! Here at the WVNPA, we are working hard to help you navigate the opportunities that the Federal CARES Act has for organizations like yours. As the situation evolves, rest assured that we will continue to update this page and our Coronavirus Preparedness landing page with information you need to make the best decisions for your organization.

IMPORTANT: After reviewing the information provided from the experts on these issues, if you still have questions, we’d like to hear from you. We’ve created a Federal Coronavirus Relief for WV Nonprofits Feedback Form just for this purpose. You can visit this link to submit a specific question or concern you have about applying for these programs. Again, we ask that you do your due diligence to try to find the answer at the links below before submitting your question. Whenever possible, we will work within the resources we have to find answers for you. These questions and answers will be posted on our Coronavirus Preparedness page as well as communicated to the individual who posed the question.

A Breakdown of Federal Relief Options

Currently there are five opportunities for nonprofits:

  1. Delay of Payroll Tax Remittance
    • This provision is to help with cash flow for organizations.
    • You can elect to defer the submission of the employer portion of payroll taxes (6.2% Social Security) between 3/27/20 and 12/31/21.
    • 50% of those monies will be due on 12/31/21 and the remaining 50% will be due on 12/31/22.
    • You are excluded from this program if you participate in the Paycheck Protection Program/Loan (see below).

  2. Employee Retention Credit
    Section 2301 of the CARES Act creates a refundable payroll tax credit against Social Security taxes of up to $5,000 for each employee on the payroll when the conditions mentioned below are met. There are 3 eligibility requirements:
    • You were in business: You don’t get an employee retention credit if you don’t “retain” employees and don’t continue operating during the 2020 COVID-19 crisis. Congress provides this generous credit to subsidize employers who continue to operate.
    • You were disrupted: Because either 1) you had to fully or partially suspend operations due to a governmental order related to COVID-19, OR 2) your gross receipts in 2020 decreased by 50% over the same quarter time period in 2019.
    • You don’t receive a loan through the Paycheck Protection Program (PPP): You lose eligibility for the retention credit if you take a loan through the PPP (see below) – the government has put some safeguards in place to prevent double dipping to cover the same expenses.
    • Two more parameters:
      • If you have more than 100 employees, the credit applies when wages are paid to employees when they are not providing services due to the coronavirus-related circumstances described above. Imagine a scenario where you keep all of them on the payroll and pay them to stay home because the type of service/work you provide cannot be done via telework, this qualifies. If, however, you lay off all of your employees, you’ll have no payroll and therefore nothing to get a credit against.
      • If you have less than 100 employees, the credit applies to all employee wages whether the employer is open for business or subject to a shut-down order.
  3. Paycheck Protection Program (PPP)
    An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. This program will be available through June 30, 2020.

  4. Expanded SBA Economic Injury Disaster Loans and Loan Advance 
    Disaster loans for eligible nonprofits and other applicants with 500 or fewer employees.

  5. Emergency Paid Sick Leave and Emergency FMLA
    Implemented April 1, 2020, the U.S. Department of Labor announced new action regarding how American workers and employers will benefit from the protections and relief offered by the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act, both part of the Families First Coronavirus Response Act (FFCRA).

Still Have Questions?
In addition to the information above, we invite you to explore the following resources or visit our Coronavirus Preparedness webpage:

If You Need More Assistance
Please note that if you need it, you should seek advice from an attorney, accountant or bank – as appropriate. The WVNPA is set up to share information, connect you with resources, and get your questions answered whenever possible, but we do not advise nonprofits on accounting, loan, or labor issues.

We’re Here For You
Again, the WVNPA is your partner in finding resources for your nonprofit decisions regarding this pandemic. If you have questions that are not answered in the above resources, please submit a question to our Federal Coronavirus Relief for WV Nonprofits Feedback Form. We will do all we can to help you find the answers. Thank you for all you do for our communities in the Mountain State!