Can You Get Funding from CARES Act and Local COVID-19 Emergency Response Funds?

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As new loan and grant opportunities pop up through the CARES Act, COVID-19 emergency response funds, and other funding sources, you may feel pressure to research and apply for all of these opportunities for your nonprofit. But do these funding sources actually apply to you? In this special episode of the Nonprofit Jenni Show, we’ll cover the basics of the new CARES Act legislation and best practices for researching and applying to COVID-19 rapid response funds. Our special guests this episode are Charles Rodriguez from Adams Keegan and grant writing professional Nicole Sibilski.

How the CARES Act Paycheck Protection Program Works for Nonprofit Organizations

Our first guest on the podcast this week was Charles Rodriguez, the Vice President of Human Capital from the human resources firm Adams Keegan. I asked Charles to explain what the Paycheck Protection Program (PPP) means for nonprofit organizations and their teams.

What are the different loans offered to nonprofit organizations through the CARES Act?

Charles explains that part of the CARES Act includes a forgivable Economic Injury Disaster Loan with a cap of $10,000, but all of these funds have been allocated.

Fortunately, the PPP allows your organization to take out an emergency low-interest SBA loan for an amount up to 250% your normal payroll costs. If your organization has already applied for the Economic Injury Disaster Loan and you realize you could take out a greater loan through PPP, Charles recommends transferring your $10,000 loan into the PPP so you can take advantage of larger funding opportunities. (You aren’t able to keep both loans.)

To apply for the loan, you have to apply with an SBA-approved lender. The easiest step for you to take is to ask your bank if they qualify.

Does the Paycheck Protection Program (PPP) offer grants to nonprofit organizations?

Although the PPP is not a grant program, Charles considers it a “loan-to-grant” program. This is because any amount of the PPP loans you spend before June 30 have the opportunity to be forgivable, as long as your organization follows two basic stipulations:

  1. The loan must be used to float your payroll up to its maximum level through June 30. This means you may need to rehire any staff you have laid off or furloughed due to the COVID-19 crisis.

  2. Your organization can only allocate 25% toward overhead and operational costs.

Charles notes that even if your organization doesn’t take advantage of the “forgivable permissions,” PPP still offers a very low-interest loan for nonprofits.

What if my nonprofit doesn’t have enough work to give employees due to COVID-19 related closures?

Charles acknowledges the challenge of wanting to pay your staff through the period of social distancing, sheltering-in-place, and shutdowns of certain industries. For example, many nonprofits offer after-school programs which have had to be canceled while schools are closed, so those program staff may have significantly less work to perform.

However, now you have the opportunity to change their job description to meet new needs. For example, some nonprofit theatres are having their costume teams make masks now. You can also collaborate with local nonprofits to find their needs and fill gaps where they may lack employees.

Are there any potential issues for PPP funding for nonprofit organizations?

One thing to keep in mind is that the CARES Act adds an extra $600/week for individuals who are laid off due to COVID-19, and this money is added on top of each state’s individual unemployment programs. You may have employees who ask to be laid off if the unemployment pay is higher than their normal pay.

Charles has seen some organizations offering temporary “Hero Pay” bonuses for their employees at this time to remain competitive with unemployment. You can also talk with Adams Keegan about other HR questions, including the CARES Act, with a free consultation.

How to Find CARES Act Grants and Other COVID-19 Relief Funding for Nonprofit Organizations

My second podcast guest was my friend and grant writing professional Nicole Sibilski. Nicole specializes in government and foundation grants, so I asked her to break down information about CARES Act grants, as well as local foundation grants that are popping up in response to COVID-19.

What are the two parts of the CARES Act related to grant funding?

When we’re strictly looking at the grant funding portion of the CARES Act, Nicole explains we should approach the opportunities in two acts:

  1. Emergency Funding -- Each state received a certain allotment from CARES Act that they could use as they see fit, and each federal agency has received funding they can also distribute as they see fit.

  2. Long-Term Planning -- This funding is geared toward telemedicine and telehealth in an effort to address healthcare inequities which disproportionately impact underserved communities.

How can my nonprofit get emergency funding from the CARES Act?

Nicole has seen each federal agency doing things their own way, without a common theme across the agencies.. For example, the National Endowment for the Arts (NEA) has a grant that’s only available to organizations who have received NEA grants within the past 4 years.

Nicole recommends you take two steps as you try to navigate the CARES Act emergency funding:

  1. Start with your state. Find out where your state is allocating funding and research eligibility requirements for those grants.

  2. If you have previously received funding from a federal agency, go back to that agency and research their current emergency grant opportunities.

How can my nonprofit get long-term planning funding from the CARES Act?

Nicole tells us that the federal government is prioritizing plans to bring healthcare access to people in hard-to-reach areas, such as rural regions. These long-term planning funds will be allocated toward:

  1. Developing telehealth solutions

  2. Creating reliable connectivity by bringing broadband access to areas which don’t have a way to consistently connect to the internet

If you think your organization could qualify for long-term planning funding because you want to start offering telehealth services, Nicole recommends you ask yourself two questions:

  1. When you consider your mission, what are the immediate gaps that need to be filled?

  2. How can you modify services within the scope of your mission to address these new problems?

If you believe telehealth services could feasibly be implemented within your current services to meet your mission, the next step is to get a tech assessment. Find a trustworthy technology consultant who truly understand the unique needs of nonprofit organizations, and ask them to perform a tech assessment (sometimes called an IT systems audit) for your organization. This will help your organization know whether the services you want to provide and the technology you’re able to implement align with the grant’s requirements.

Keep in mind that the needs for the hubs (where the doctors are based) versus the end user site (where the patients are located) are very different. When writing your grant, be able to be specific about your plans to offer reliable, consistent services.

How can my nonprofit get COVID-19 rapid response grants from local foundations?

Similar to federal agencies, most rapid response grants are only giving money to organizations that have received a grant from them in the past few years.

But don’t be discouraged! Nicole suggests you go to your current grantors, ask to be released from the current grant contract, and to be rewarded the full grant amount so you can use the funds for your areas of greatest need (i.e., as unrestricted funds).

Next, go to your local community foundation and ask what resources they can offer right now. Don’t be afraid to ask if they’re offering rapid response grants, or know of other opportunities for which your nonprofit would possibly be eligible.

Finally, if you have a nonprofit networking group or education center in your local community, ask them what resources they can recommend. You can also connect with Nicole Sibilski on LinkedIn to learn more about her grant writing, research, and consulting services.

Get a Thorough Breakdown of the CARES Act and How it Impacts Nonprofit Organizations

This was a quick podcast episode with just over 40 minutes of information about the CARES Act… But this piece of legislation is super long and complex, and I definitely recommend reading more details from the Colorado Nonprofit Association’s extensive breakdown of the act on their website. Learn more about:

  • The specific requirements of PPP

  • Loosened individual and corporate giving regulations

  • Direct payments to households, which could free up charitable giving dollars

  • And more

Get Professional Help Deciding Your Next Steps

I created this podcast episode because I’ve been hearing from so many nonprofit professionals who are freaked out by the COVID-19 crisis and how it will impact their funding opportunities. I can’t wait to hear from you too! Schedule a free initial consultation call to chat with me about your idea for a new nonprofit, social enterprise, or other social sector organization. I would love to help you figure out the best next steps to take to protect your organization and mission. Also, don’t forget to subscribe to the Nonprofit Jenni Show for free so you won’t miss any new episodes about resilience through COVID-19!

Also, I want to thank Adams Keegan for sponsoring this episode! Adams Keegan offers affordable employer solutions, and they have a special division which is solely dedicated to serving nonprofit organizations. Schedule a consultation call with them to get customized, free advice for your nonprofit’s HR policies and management.