5 Things We Love About PPP2
Yes, you heard that right! We think there’s a lot to like in PPP2. If you haven’t considered seeking out this support, take a look (or a listen) at our list and decide whether your nonprofit organization should learn more about this program.
#1: It’s much less complicated than the first PPP round. Unlike the first round which was being modified in real-time as the program rolled out, the guidance on this round is much clearer and simpler.
#2: Lots of local nonprofits will be eligible to participate. Your organization is eligible if you have a) fewer than 300 employees and b) at least one quarter in 2020 where your gross receipts decreased at least 25% from receipts in the same quarter of 2019.
#3: A good amount of funding is available. Organizations can receive 2.5 times their average monthly payroll, up to $2,000,000. If you received a loan in PPP1, you do not need to have repaid that loan to seek PPP2 funding. You just need to demonstrate that your organization has spent the PPP1 money.
#4: Adjustments to the distribution process have been made to make the program more equitable. Smaller community banks are receiving early access to the program so that they can help small businesses, minority- and women-owned businesses, and nonprofits to connect to the program. Major publicly-traded companies will not be allowed to seek funding in PPP2.
#5: There is a specific pool of funds to support artistic venues. Many of our arts partners will be happy to learn that PPP2 includes some funding for venues. If that describes your organization, talk to your advisor about how to apply.
Of course, there’s no way we can provide detailed advice in a blog post. But for these reasons and others, we think PPP2 is something any healthy nonprofit should be considering. More information can be found on the SBA’s website or by calling your financial advisor.