The deadline to apply for the latest round of funding through the Paycheck Protection Program (PPP) is this Saturday, August 8.

According to the Small Business Association (SBA) there’s $130 million in funding still available through the PPP.

With ample available dollars and the deadline looming, the Michigan Nonprofit Association (MNA) has been encouraging nonprofits to apply for a PPP loan. MNA shared in an email last week that it’s critical to get nonprofits to apply given the “evidence that fewer nonprofits than expected (especially smaller nonprofits) applied or were successful” with the first round of PPP loans.

What can you do?

• As funders, you can help raise awareness about the PPP with your nonprofit partners now.

• Consider applying for the PPP and submit your application today if you haven't done so already. Here are some PPP resources we shared with CMF members in April.

• If you have applied, follow up with your financial institution as soon as possible for an update on your application status.

The latest data from the SBA shows that more than 5 million loans have been issued through the program since it launched on April 3, with the average loan size around $102,000.

The Dorothy A. Johnson Center for Philanthropy recently released an analysis of the PPP, highlighting the number of eligible nonprofits that have received PPP funding.

In his analysis and blog, Jeff Williams, director of the Community Data and Research Lab (CDRL) at the Johnson Center for Philanthropy, shared that nationally, nonprofits received 3.7% of all loans issued through the program.

Williams noted that in Michigan 44% of eligible nonprofits that applied for a PPP loan received one.

CMF has reported on some of the challenges facing nonprofits in accessing capital through the PPP. As we have shared, most small and mid-sized nonprofits don’t have lines of credit or existing relationships with banks which slowed or complicated the loan process, among other factors. 

CMF worked in partnership with MNA and the Small Business Association of Michigan (SBAM) this spring to launch a focused effort that helped to ensure nonprofits in need would be able to access critical funding, an effort supported by CMF members. Our collaborative work included providing tools and resources to remove barriers to access and amplifying communications, including targeted messaging in ethnic and minority media outlets.

There’s no official word on future PPP loan opportunities following the August 8 deadline.

A new bill was introduced last week on Capitol Hill that if passed, would allow eligible small businesses to apply for a second forgivable PPP loan if they can demonstrate a 50% reduction in gross revenues. The legislation is part of the latest COVID-19 relief package under consideration, the Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act.

Want more?

Read the PPP nonprofit recipient analysis from the Johnson Center.

Learn more about the PPP and how to apply.

Connect with the Michigan Paycheck Protection Program.