Nonprofit organizations in Georgia that have been hurt financially by the pandemic can reach out to the University of Georgia’s J.W. Fanning Institute for Leadership Development for assistance in applying for federal aid.
The Economic Aid Act, a part of the overall Consolidated Appropriations Act of 2021 signed into law on Dec. 27, 2020, allocates more funding to support nonprofits through both the Economic Injury Disaster Loan and Paycheck Protection Program.
“The COVID-19 pandemic has both increased the demand on many nonprofit organizations and hampered their ability to raise the funds necessary to operate and support their communities,” said Matt Bishop, director of the Fanning Institute, a UGA Public Service and Outreach unit. “This additional funding, which includes increased nonprofit eligibility, will help these organizations continue their vital work.”
The legislation also creates a set-aside for small nonprofits with 10 or fewer employees and nonprofits located in distressed areas and sets up targeted programs for disadvantaged nonprofits and nonprofits that have been hardest hit by the pandemic.
“Oftentimes, it is the small nonprofits and those in distressed areas which are called upon the most in difficult times like these, yet they can often suffer the most from funding interruptions and declines, so this funding is of particular importance to them,” Bishop said.
Key components of the legislation include:
- A second draw of the PPP loan that will now be available to additional nonprofit organizations that do not employ more than 300 employees. This program provides Small Business Administration loans of up to $10 million to certain nonprofits and tax-exempt veterans’ organizations. Nonprofits are also eligible to have portions of these loans forgiven, effectively turning the loans into grants.
- An emergency Economic Injury Disaster Loan advance grant that will allow eligible nonprofits that have applied for an EIDL loan to request an advance on that loan up to $10,000.
- Elimination of the requirement to deduct an EIDL advance from the PPP forgiveness loan.
- The Save Our Stages Act, which allocates $15 billion in SBA grants to live venues, independent movie theaters and other cultural institutions—including those operated by nonprofits.
The institute has set up a nonprofit assistance help line to field inquiries and provide guidance with the funding opportunities. The number is 706-363-0926.
“We encourage nonprofits who have questions to reach out to us and we will connect them with the resources and support available to them,” Bishop said.
Nonprofit organizations can learn more about the programs and eligibility requirements by clicking here.