SBA Loan Briefing – 2 PM ET - Shared screen with speaker view
For question que. When do you expect application to be out in the marketplace?
Thank you for your information. Are there any restrictions regarding companies that have taken equity investments?
We are a small synagogue and not in federated community. Are we still eligible?
I will try to answer some questions here.
All 501(c)(3) organizations that have 500 or fewer employees can apply.
Does the quantity of SBA loans a bank has provided in the past have significance? Is it truly better for a small org (like a Hillel) to work with their own banker instead of trying to leverage a larger relationship?
The Paycheck Protection Program has a forgiveness clause, but the EIDL program does not.
@Joy Goldstein I believe the EIDL loan can be refinanced and rolled into a forgiveable PPP loan
Are the loans 100% guaranteed by the federal govt? Is the bank taking any risk? (I had heard that 85% of the loan was guaranteed but 15% was bank risk.) Can you clarify as this will impact the banks' willingness to make these loans. Local emergency funds could be used to guarantee the other 15%...
Are child care teachers that are not eligible for UI b/c we are a religious organization eligible for the Temporary Pandemic Unemployment Insurance Benefit?
Does the $100,000 threshold compensation include contributions to health insurance, retirement, taxes, etc?
Are there underwriting/credit requirements, or are all eligible?
on the parsonage
We have a child care center that is part of our synagogue. As a religious organization we have not paid into the UI fund. Are they eligible to collect Temporary Pandemic Unemployment Assistance and the additional $600/week?
An issue that we’ve been looking into is how one determines the 500 or fewer employees situation. The Q&A from the Senate Committee on Small Business provides that a section 501(c)(3) includes religious organizations but is subject to “SBA’s affiliation standards.” If our synagogue is a affiliated with the USCJ, for example, do we need to aggregate the employees from all of its members? Some SBA affiliation regulations focus on financial affiliation while others addressing “issues of faith and morals.”
what about pretax healthcare premiums paid by the employer?
repeat of a question from Sarah Greenb (Thank you Sarah)…."We have a child care center that is part of our synagogue. As a religious organization we have not paid into the UI fund. Are they eligible to collect Temporary Pandemic Unemployment Assistance and the additional $600/week? "
Number of employees or number of FTE's?
Bill is written as number of FTE's Ari.
So to clarify - loan eligibility is based on employees/number of individuals - but loan forgiveness is based on FTEs, not individuals?
20% or 25%?
Is the reduction of loan forgiveness in the event of salary reduction of equal of greater to 25% binary or is it proportionate to the reduction?
If you maintain your full FTE, will the full amount of the loan be forgiven?
Loan forgiveness is based on FTE's
what was the time period again for the Payroll reimbursement ?
Full FTE full forgiveness for covered period of 8 weeks.
The government is notoriously bad at forgiving loans (student loans etc.), How can we ensure that lots of red tape and/or policy change doesn't stop the loans from being forgiven?
Mark mentioned retirement benefits are included. However calculations on JFNA website example doesn't mention retirement. Please clarify.
what is the % of FTE employee retention after the 8 weeks again?
How do we count worker who are paid hourly and now are simply working less hours? Do we say that if they are working the same number of hours (cumulatively) by June 30, we can get the full forgiveness?
Please clarify the 500 FTE maximum staff requirement and the status of summer or seasonal staff in that count.
So the forgiven amount will be stated in writing at the time of closing the loan?..as well as the terms?
to get the forgiveness
Steve Woolf just mentioned that the “covered period” for forgiveness purposes is the 8-weeks from “origination” - which is consistent with the definition of “covered period” under Sec. 1106. But the Senate Committee summary says the borrower gets to elect the 8-week period between Feb 8 and June 15 (the definition of “covered period” under Section 1102). Is the Senate Committee summary wrong?
If we are operating in a state that allows nonprofits to self insure unemployment and are therefore pay dollar for dollar, how is this impacted by the layoff/reduction of hours condition you just explained?
You have to apply for forgiveness showing that what you paid out qualifies based on what you borrowed.
Which website has the document preparation information
Do we think that "general difficulty fundraising due to office closures and in this climate" meets the threshold for suffering economic harm? If not, does having canceled a fundraising event make a difference?
Will they apply the SBA size standard prediacted on thr NAICS code and annual revenues?
Please do not forget the questions sent in advance of the webinar
Are the future webinars mainly the same content?
is there any exclusion for community foundations/DAF platforms?
I didn't see Friday's webinar, is it worth watching, or do I have the information from this webinar?
For schools, we have a number of hourly workers that stop working with summer vacation in mid June, every year. What would you advise for reporting those employees that we planned from the start of the year only to hire until June 15th?(before June 30th)
I want to repeat Joshua Donner's question..very important question...Do we think that "general difficulty fundraising due to office closures and in this climate" meets the threshold for suffering economic harm? If not, does having canceled a fundraising event make a difference?
joy, can you please repeat the email address is as well?
Joy - what is the email?
Can you cover affiliation again? How does "affiliation" with JCCA, URJ, USCJ, JFNA, OU, matter?
Ditto to Aviel! Another question regarding the 100,000 individual compensation threshold: For those employees, is their entire compensation excluded or just the amounts over 100,000? For example, when we submit our payroll costs for the forgiveness section, do we subtract 25k for an employee with 125k compensation, or do we subtract the entire 125?
Synnagogues, are not required to fill out a 990, will this make it more difficult to apply if we don't file?
How do seasonal employees (ie. camp counsellors, substitute teachers) count toward the 500 employee count?
Ari Hausman - first $100,00 is included.
How do we really know whether it is truly first come first served basis? What transparency is from SBA and Federal Gov't of list?
other than payroll data what else should be prepared?
To qualify, do we have to already have suffered harm, or just expect to suffer harm? For example, as a Day School, we haven't canceled our summer camp yet... but it will likely occur. We don't have families withdrawing yet.. but it will likely occur- or we will need to give significantly more financial aid.
For employees with salary over $100k, I understand we only count $100K of salary, but can we include their full health benefits in our calculation?
Where can we find a list of preferred lenders in our area?
Cindy, yes, up to $100,000
Incoming revenue would not affect the “spend” of the loan in the first 8 weeks?
Does the $100,000 ceiling in compensation include retirement benefits, healthcare benefits etc or is it just salary + bonus
Gordon, includes all up to $100,000
Can you add link to website?
@Cindy & Gordon. I would like clarification on this as well, but I believe the $100k is total compensation, so you can't add benefits on top of that. It's $100k limit per person, period
Can we only use pre-approved lenders that are on a list or can we use any bank to secure these loans?
We added an early childhood center in July so do not have a full year payroll including the payroll for this staff. How do we accommodate for this? Can we extrapolate out to a full year
For forgiveness, does the 25% decrease count as diminution if it is for hourly workers, or just salary? What about hourly workers who are not working because our facilities are closed?
Regarding salary/FTE reductions, if we have enough cash to keep everyone at 100% salary and have no FTE reductions then we should. What we pay out will be forgiven. Correct me if that's wrong.
Nicole, sounds correct
Is there any information for relief for Jewish Communal consultants?
@Nicole - EXCEPT the loan is based on prior 12 month average - so if your 100% salary during now through June just happens to be a percent or so higher than your payroll was over the past year, that difference wouldn't be fully forgiven (ie, last 12 months average was $200,000/month, now it's $204,000 - the loan would be $200K)
@Sarah, the max loan is 2.5 times that monthly average.
But you'll have 2.5 months of salary that you pay...
Thank you all for your help and time!
Well, you can use that on any qualified expenses over an 8 week period. Salary, rent, utilities. Over 8 weeks. So you basically have the equivalent of .5 months payroll to spend on other things (including the higher salaries that you might have now).
We will be answering your questions and posting them on JewishTogether.org