There are two time-sensitive economic assistance opportunities for nonprofits, made available through the federal government’s Small Business Administration (SBA) department, that could significantly offset financial hardship due to COVID-19 over the next few months. We encourage you to consider these opportunities rapidly as both funds will go fast.

SBA 7(a) Paycheck Protection Program: Under the CARES Act stimulus bill, you can access up to 2.5 months of payroll expenses in loans. Much of the loan is forgivable if the organization keeps staff on payroll during the loan period. This, in essence, turns a portion of the loan into a general operations grant. The total loan fund is expected to be $349B, and loans will be given out on a first-come, first-served basis. If you are interested, you will have to move fast, as we estimate that there are over 4 million eligible organizations. Application details are expected on the SBA website early next week once the bill is signed.

SBA Economic Injury Disaster Loans: EID loans offering up to $2M in assistance are also now available to nonprofits to help overcome temporary loss in revenue caused by COVID-19. The interest rate is 2.75%, with repayment terms of up to 30 years. The application is straightforward and can be completed online. However, please note that this loan does not include forgiveness provision, unlike the 7(a) program. Organizations cannot receive both, unless the loan applications are for different purposes (i.e. personnel and rent costs for 7(a) and other operating expenses for EIDL). The pot of money for this program is also much smaller, so we recommend looking into the 7(a) loans first.

Next Steps:

  1. Visit the Jewish Federations of North America SBA Loan FAQ page for more information.
  2. Register here for a webinar on COVID-19 SBA 7(a) loans on Monday, March 30 at 4:30pm ET. The webinar is open to non-profit professionals in all sectors

About these Programs

SBA 7(a) Paycheck Protection Program: Under the CARES Act stimulus bill, nonprofits and small businesses with fewer than 500 employees are eligible for loans up to $10M to meet payroll and associated costs such as health insurance premiums, facilities, costs, and debt servicing. Much of the loan is forgivable if the organization keeps staff on payroll during the loan period. This, in essence, turns a portion of the loan into a general operations grant.


  • Eligibility: 501(c)3 nonprofits with 500 or fewer employees are eligible, regardless of whether the organization qualifies as a small business under the normal SBA standards. Recipients don’t have to certify that they are unable to obtain credit elsewhere.
  • Loan Period: Loans are intended to cover expenses incurred during the period from February 15, 2020 to June 30, 2020, although a future stimulus package could extend the program beyond June.
  • Amount: Recipients are eligible for a loan of up to 2.5 times the organization’s average monthly payroll (with pay capped at $100K per employee), up to a maximum of $10M.
  • Permitted Uses: Payroll support (up to $100K per person), benefits, paid sick leave, mortgage payments, rent payments, and debt servicing.
  • Terms: Maximum interest rate of 4% and a maximum repayment term of 10 years; principal and interest are deferred for up to a year and all borrower fees are waived.
  • Loan Forgiveness: Nonprofits are eligible for loan forgiveness for the amount spent during the first 8 weeks of the loan on payroll costs, interest payment on mortgage, rent, and utilities. The portion of these expenses that is eligible for forgiveness depends on the percentage by which you reduced FTE staff and/or salaries (relative to a comparable period in 2019). The specific mechanics of this comparison are not yet defined.
  • Lenders: Loans are made directly through local 7(a) lending institutions and are guaranteed by the SBA. No personal or collateral guarantee is required. Here is a list of qualifying local lenders.

How to Apply

  • You will apply directly with local lenders. SBA is expected to release application instructions early next week.
  • Sign up here to receive updates on the application and loan process as they become available.

SBA Economic Injury Disaster Loans: As part of the first stimulus package, the SBA is providing low-interest working capital loans of up to $2M to small businesses and nonprofits affected by the coronavirus


  • Eligibility: As of March 23, small businesses and nonprofits in every state can apply.
  • Amount: Recipients are eligible for loans of up to $2M.
  • Permitted Uses: Loans may be used to cover accounts payable, debts, payroll and other bills the coronavirus has affected your ability to pay.
  • Terms: These loans carry an interest rate of 2.75% for nonprofits. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay, but go up to a maximum of 30 years.

How to Apply

Call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 if you need help with your application.

About EdLoC

Education Leaders of Color (EdLoC) is a community of more than 300 leaders of color working to elevate the leadership, voices and influence of people of color in education and to leading more inclusive efforts to improve education. EdLoC aims to advance a third way that breaks through the polarizing divides that have consumed efforts to improve public education and to forge the alliances needed to realize and sustain EdLoC’s vision of providing low-income children of color expansive and substantive opportunities for the highest levels of academic and economic attainment.