COVID-19, the Nonprofit Industry, and What We’re Doing

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COVID-19, the Nonprofit Industry, and What We’re Doing

Our friends at the Montana Nonprofit Association are on top of everything related to COVID-19 as it affects the nonprofit industry. In fact, they just updated some information for nonprofits that we’d like to pass along.

First, there have been changes to the Paycheck Protection Program (PPP) that was part of the PPP Flexibility Act drafted by Montana Senator Steve Daines. They include:

  • Extending the coverage period weeks for forgiveness of the loan from 8 weeks to 24 after disbursement.

  • Providing leniency in loan forgiveness based on reductions in full-time employees for borrowers that are unable to return to the same level of business activity that they were at on Feb. 24 of this year.

  • Extending leniency to businesses unable to hire similarly qualified employees for unfilled positions by the end of 2020.

  • Lowering the requirement to 60% of a borrower’s loan proceeds to be used for payroll during the 24-week loan forgiveness period. The previous requirement was 75%.

  • Increasing the maturity of PPP loans approved on or after June 5 by the Small Business Administration (SBA) to five years.

  • Extending the deferral period for payments of principal, interest, and fees on PPP loans to the date that the SBA remits the loan forgiveness amount to the lender.

  • Confirming that June 30 is the last date a PPP loan application can be approved.

These changes provide more relief for nonprofits by easing restrictions that made it difficult to comply with loan provisions. A town hall by the MNA provided a tutorial and Q&A on PPP forgiveness and is definitely worth watching here.

Finally, the Southwest Montana COVID-19 Response Fund that was co-created by the Greater Gallatin United Way and the BACF – now known as One Valley Community Foundation – has raised almost half a million dollars and distributed more than $400,000 to our nonprofit partners in need. More than 50 gifts, ranging from $750 to $50,000, have been granted to date.

Now that all the grant requests received have been funded, the Response Fund is transitioning into a new “recovery” phase. Check back in this space and other places throughout the OVCF website in the future as we make this change.

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