Update: CARES ACT
April 6, 2020
By now, we imagine you are all aware of the new loans and tax credits available as part of the CARES Act. There are 2 types of loans: Payroll Protection Program (PPP) and Expanded Economic Injury Disaster (EIDL). You may not apply for both, but if you have an existing EIDL loan, you may roll it into a PPP loan. The tax credit may only be applied for if you do not receive either of these two loans. We have included some guidance here and if you have any questions, please do not hesitate to reach out to Alexis Colker at email@example.com or 919.956.9124, ext. 203. The information from the federal government is constantly changing, and this guidance is current as of today, April 6, 2020, but is subject to change.
CARES Act Loan Chart - produced by the National Council of Nonprofits eligible nonprofits choices for securing cash needed to maintain staff and operations.
TAX ADVICE ON REFUNDABLE PAYROLL TAX CREDITS
The IRS posted an explanation of the refundable tax credits available to small and midsize businesses that are required to provide paid leave. The explanations, arranged in a helpful Q&A format, clarify common areas of confusion. VIEW FAQ.
Both loans will cover payroll for staff, but if a majority of staff salaries are paid for by grant funds, it is important to make sure you are not supplanting.
Borrowers must complete the PPP application through a commercial lender. It is best to reach out the bank that you currently use. You can find a sample form here SBA Form 2483 (Paycheck Protection Program Application Form) but each lender will have their own online portal and application.
Payroll Costs Defined
As defined by SBA: “Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation.”
Calculating Payroll Costs
The rule lays out a five-step process for calculating payroll costs for purposes of PPP loans:
- Aggregate payroll costs (see above) for last 12-months;
- Subtract pay from each employee in excess of $100,000;
- Divide step 2 total by 12 months to get the monthly average;
- Multiply step 3 total by 2.5; and then
- Add any outstanding amount from an EIDL loan received between 1/31/2020 and 4/3/2020, “less the amount of any ‘advance’ under an EIDL COVID-19 loan (because it doesn’t have to be repaid).
Update: SBA loans for nonprofits
April 3, 2020
The application for the CARES Act loans opens TODAY, 4/3, and agencies apply through their banks. Here is a flyer with information about the CARES Act loan options for nonprofits. There are two options, and you cannot apply for both:
1) Payment Protection Loan
2) Economic Injury Disaster Loan
Agencies cannot use these loans to supplant your grant funds. The loans may be partially or fully forgivable, but NCCADV has been advised by the National Network to End Domestic Violence that this will be very competitive. They anticipate only about 25% of the loan will be forgiven.
Update: Statewide "stay at home" order
March 31, 2020
Governor Cooper issued a shelter in place order for the state of North Carolina that went into effect on March 30 at 5:00 PM. For more information about what domestic violence agencies and survivors should know about the order, check our FAQs page.
Update: "Shelter in place" or "Stay at home" orders
March 25, 2020
Governor Cooper has not issued a statewide “shelter in place” or “stay at home” order at this time. However, local governments have the authority to issue these types of orders to cover their counties or cities. Despite the name, these orders often contain exceptions that allow travel related to certain essential work. Many counties and cities across the state have issued these orders. The orders reviewed by NCCADV currently classify all social services and public safety work as “essential,” which allows domestic violence service providers to continue their work uninterrupted and allows survivors to travel as needed to access services. We anticipate multiple counties and cities may issue these types of orders in the near future, and we encourage you to review the language of any order in your area carefully.
If a “stay at home” or “shelter in place” order is issued in your city or county, you should review the text of the order to ensure that your services can continue without interruption. NCCADV advises agencies to make a communication plan now about how you will use your website, local contacts, and social media to let survivors know how they can continue to seek and access services during a “shelter in place” or “stay at home” order. If you have questions about a “stay at home” or “shelter in place” order issued in your area, you can contact Sherry Honeycutt Everett at firstname.lastname@example.org or Kathleen Lockwood at email@example.com for further guidance.
Letter from our Executive Director
March 20, 2020
Dear Members, Partners, and Friends,
Like you, NCCADV is monitoring the news and health department guidance about COVID-19 extremely closely. The situation is changing rapidly and we wanted to let you know about the additional steps we are taking as an office.
Based on the latest advisory from the North Carolina Department of Health and Human Services (NCDHHS), we are initiating further steps to do our part to prevent or slow the spread of COVID-19: