Audit, tax, wealth advisory, and consulting firm CliftonLarsonAllen (CLA) has created a COVID-19 Support and Resources offering to help organizations create a strategy to navigate the uncertainties created by COVID-19. Dan Davis, Director, Life Sciences & Technology at CLA, has also provided a brief summary of the various funding programs available to organizations during the current crisis.
There are a few programs that organizations are using to help with liquidity during the COVID-19 pandemic:
- CARES Act’s Paycheck Protection Program (PPP): The CARES Act provides significant funding for Section 7(a) Payroll Protection Program loans for organizations with fewer than 500 employees. If your organization satisfies the eligibility criteria it may be eligible to receive a loan equal to 2 ½ times your average monthly payroll up to a maximum of $10 million to fund payroll, rent, utilities and interest on mortgages, and existing debt. The best part is that some or all of the loan may be forgiven when you meet the conditions under PPP.
- SBA Emergency Injury Disaster Loan Program (EIDL): SBA EIDL has been approved for COVID-19 funding for all states. Loans are for working capital and organizations can receive up to $2 million. Loans bear interest at 3.75% for businesses and 2.75% for nonprofits. Payments are deferred for one year.
- CARES Act’s Emergency Grant: Organizations applying for the EIDL can also qualify for an additional $10,000 emergency grant, paid within 3 days, even if the application is denied.
- Other Grant Programs: As a result of the CARES Act and other relief and emergency funding opportunities, there will be more grant opportunities available at the federal, state, and philanthropic / foundation level. There will be opportunities available for businesses, state and local governments, higher education institutions, health care related entities, and nonprofits. Many of these funding opportunities and programs are still “trickling down” from the federal level or are still being developed by the funding agencies and in most cases the application process is not yet set up.