Reduced Grant Writing Fees

What follows is an open letter to nonprofit executives facing a host of problems related to the impact of the Corona virus. Funding is tight and quickly dwindling. Grant opportunities, where and when they exist, are much needed. While I cannot offer my grant writing services at no cost, I can offer reduced grant writing fees.

photo of Jean Campbell,reduced grant writer fees

Dear Executive Director,

If your organization needs help with grant writing while dealing with the impact of the Corona virus, please consider My Grant Writer “On Call” services. For the next six months, I will reduce grant writing fees to nonprofit organizations.

Please go to Grant Writer “On Call” to review my grant writing services and the Corona virus Reduced Grant Writing Fees option for nonprofit organizations.

Grant Writer “On Call” is meant to compliment and assist nonprofit organizations. It is not meant to replace existing staff. It is a service that can fill in or be an extra source of grant writing assistance in difficult times such as these.

During the past 37 years I raised over 100 million dollars through grant writing. I spent 20 years in nonprofit management as a development director and as an executive director.

Since 2003, I continue to assist nonprofit organizations through my NYC Certified Woman Business Enterprise, Campbell Development Group, LLC,(CDG).  CDG is a digital and print media company offering a number of fund development and communications services.

My grant writing is a ghostwriting service. As such, each grant I write for an organization is protected by a confidentiality agreement, and becomes the property of the organization.

If you have questions about my grant writing services or fees, please call me at 646-269-5818. You can also reach me by email, jean@grantwriteroncall.com.

Wishing you and your organization the best,

Jean Campbell,  CEO, Campbell Development Group, LLC

 

 

 

Apply for CARES Act Small Business Funding

If you want to apply for CARES Act Small Business Funding, the following information will help you prepare your application.

Small Business Funding through the CARES Act provides assistance on several levels  including the Paycheck Protection Program and the Small Business Debt Relief Program.  Here are some of the major details regarding the Paycheck Protection Program (PPP) and Small Business Debt Relief Program.  Please note that it may take several days for a small business owner to gather the required information to support claims.

  Paycheck Protection Program:

  • During the Covered Period, the maximum loan amount permitted for an eligible Covered Entity is the lesser of $10,000,000 and an amount calculated based on a payroll formula that essentially equals 2.5x the average total monthly payroll cost incurred in the one-year period before the loan is made.
  • If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.
  • Eligible Businesses – including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act – with 500 or fewer employees may apply.
  • Provides 100% government guarantee of 7(a) loans until December 31, 2020; 75% guarantee for loans more than $150,000 and 85% for loans equal to or less than $150,000 after December 31, 2020.
  • The interest rates for loans borrowed by a Covered Entity under the program may not exceed four percent (4%).
  • Any Paycheck Protection Loan that has a remaining principal balance after any applicable loan forgiveness (as covered in detail below) must have a maturity date no later than 10 years from the date on which the borrower applied for loan forgiveness.
  • The SBA will direct lenders to defer all payments (principal, interest and fees) otherwise due under a Paycheck Protection Loan for a minimum of 6 months and a maximum of 12 months.
  • A borrower will not be required to pledge any collateral or provide personal guarantees to secure or support a Paycheck Protection Loan.
  • During the 8-week period beginning on the date a Paycheck Protection Loan is funded (the Forgiveness Period); a borrower will be eligible for forgiveness and cancellation of indebtedness for up to the full principal amount of such loan. The amount eligible for forgiveness (the Total Eligible Forgiveness Amount) is equal to the total costs incurred and payments made during the Forgiveness Period for (1) payroll, (2) mortgage interest, (3) rent and (4) utilities.
  • The loan forgiveness amount available to a borrower is subject to reduction if the borrower terminates employees or reduces employee salary and wages during the Forgiveness Period. There is, however, relief from the forgiveness reduction if the borrower rehires employees or makes up for wage reductions by June 30, 2020.
  • You cannot use your Paycheck Protection Program loan for the same purpose as your other SBA loan(s). For example, if you use your PPP to cover payroll for the 8-week covered period, you cannot use a different SBA loan product for payroll for those same costs in that period, although you could use it for payroll not during that period or for different workers.

Small Business Debt Relief Program:

 This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans.

  • Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months.
  • This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.
  • Relief under this program will not apply to a Payroll Protection Program.

 Eligibility:

  • The business or non-for-profit will need to have been in business as of February 15th, 2020, paid employee salaries and payroll taxes, or filled 1099-misc(s) for contractors prior to March 1, 2020.
  • Borrowers can borrower 2.5 times their monthly payroll expenses, up to $10 million.
  • Applicable uses for the loan proceeds include:
  • qualified payroll costs;
  • rent;
  • utilities;
  • interest on mortgage and other debt obligations incurred before Feb 15th, 2020.
  • Loan forgiveness is available for funds used to pay 8 weeks of payroll and other qualified expenses.

 Preliminary Checklist:

 2019 Business Tax Returns or Year End Financial Statements (Balance Sheet and Profit and Loss) as of 12/31/2019

  • Year To Date (YTD) Financial Statements (Balance Sheet and Profit and Loss) Through February 15, 2020
  • 2019 Payroll Cost and YTD Payroll Cost Through February 15, 2020.
  • Number of employees as of 12/31/2019
  • Number of employees as of 02/15/2020
  • What industry does your business fall under? What products/services do you offer?
  • Payroll Expense Verification Documents:
  • Payroll summary report from ADP, UltiPro, or other third party payroll administrator records evidencing pay roll records for year ending in 2019 with corresponding bank statements.
  • If the business uses internal platforms such as QuickBooks, then we will need bank statements and/or canceled payroll checks identifying the payroll.
  • List of all employees (don’t need names right now) with compensation over $100k ($100k per employee is the limit) and a worksheet showing that the borrower has reduced each employee down to $100k for purposes of this formula.
  • Copy of IRS form 940 employers annual federal unemployment tax return (FUTA)
  • Copy of IRS form 941 tax statements, if applicable and available.
  • Copy of Records of payments made for vacation, parental, family, medical or sick leave (need cancelled checks or bank statements or other sufficient evidence thereof).
  • Copy of Records of payments made for the provisions of group health care benefits, including insurance premiums (need cancelled checks or bank statements or other sufficient evidence thereof).
  • Copy of Records of payments made for state or local taxes assessed on the compensation of employees (payroll taxes) (need cancelled checks or bank statements or other sufficient evidence thereof) (as noted above quarterly 941 statements will suffice if available).

Hopefully this information will give you a jump start on getting all the required documentation together. The application process begins with a visit to your bank, which needs to be an SBA approved lender.

Grant Writer “On Call”…Bridging the Gap is a grant writing service of Campbell Development Group, LLC . As the “On Call” grant writer, I bring 35 years experience in grant writing. During which time, I raised 100M to support nonprofit programs and services. To read more about my grant writing services, please visit Grant Writer on Call.

Thanks for visiting!

Jean Campbell

Small Business Coronavirus Funding

Small business owners, including  me, are applying for the Small Business Coronavirus Funding through the CARES Act. I’ve read descriptions in the NY Times, Washington Post, the CARES Act and on the Small Business Administration site.

I found the following article written by Sean Ludwig, on the U.S Chamber of Commerce site, the easiest to understand. However, before you decide to apply for this funding, it is best to speak with your financial advisor.

Coronavirus Aid, Relief, and Economic Security Act: What Small Businesses Need to Know

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), is the largest financial assistance bill ever. It includes provisions to help small businesses. Here are the highlights.

The Coronavirus pandemic has created uncertainty and stress for many American small businesses. Part of the government’s response to assist businesses during this time is the recent passage of the CARES Act. A massive $2 trillion is allocated for businesses, individuals, federal agencies, state and local governments. The CARES Act is designed to distribute capital quickly and broadly. There are a number of provisions that impact small businesses. Here’s a breakdown of what you need to know:

Paycheck Protection Program

The Paycheck Protection Program, is one of the largest sections of the CARES Act. It is the most important provision in the new stimulus bill for most small businesses. This new program sets aside $350 billion in government-backed loans.  It is modeled after the existing SBA 7(a) loan program many businesses already know.

How does the program work?

Currently, the SBA guarantees small business loans that are given out by a network of more than 800 lenders across the U.S. The Paycheck Protection Program creates a type of emergency loan that can be forgiven when used to maintain payroll through June. It expands the network beyond SBA so that more banks, credit unions and lenders can issue those loans. The basic purpose is to encourage  small businesses to not lay off workers. It also enables businesses to rehire laid-off workers that lost jobs due to Coronavirus disruptions.

What types of businesses are eligible?

The Paycheck Protection Program offers loans for:

  • Small businesses with fewer than 500 employees
  • Select types of businesses with fewer than 1,500 employees
  • 501(c)(3) non-profits with fewer than 500 workers
  • Some 501(c)(19) veteran organizations

The self-employed, sole proprietors, freelance, and gig economy workers are also eligible to apply. Businesses, even without a personal guarantee or collateral, can get a loan of up to $200,000 if they were operational on February 15, 2020.

How big of a loan can I get and what are the terms?

The maximum loan amount under the Paycheck Protection Act is $10 million, with an interest rate no higher than 4%. No personal guarantee or collateral is required for the loan. Lenders are expected to defer fees, principal and interest for no less than six months, no more than one year.

Can these loans be forgiven?

Yes, small businesses that take out these loans can get some or all of their loans forgiven, as long as employers continue paying employees at normal levels during the eight weeks following the origination of the loan. The amount spent on payroll costs (excluding costs for any compensation above $100,000 annually), mortgage interest, rent payments and utility payments can be combined. That portion of the loan will be forgiven.

Changes to the SBA’s Economic Injury Disaster Loans (EIDLs)

Another important aspect of the CARES Act for small businesses is that it expands eligibility for the SBA’s Economic Injury Disaster Loans (EIDLs). In early March, the SBA’s disaster loan program was extended to all small businesses affected by COVID-19, but the CARES Act opens this program up further and makes it easier to apply.

These changes include:

• EIDLs are now also available to Tribal businesses, cooperatives, and ESOPs with fewer than 500 employees. They are also available to all non-profit organizations, including 501(c)(6)s, and to individuals operating as sole proprietors or independent contractors.

  • EIDLs can be approved by the SBA based solely on an applicant’s credit score.
  • EIDLs that are smaller than $200,000 can be approved without a personal guarantee.
  • Borrowers can receive a $10,000 emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses.

For everything you need to know about applying for a small business loan, see the U.S. Chamber’s Small Business Loan Guide.

Can a Business get an EIDL and a Paycheck Protection Program Loan?

Yes, small businesses can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenss.  However, be sure to check with your financial advisor or lender before taking both types of loans if you are not sure of the specifics.

‘Grant Writer “On Call”…Bridging the Gap is a grant writing service of Campbell Development Group, LLC. As the “On Call” grant writer, I bring 35 years experience in grant writing. During which time I raised 100M to support nonprofit programs and services. To read more about my grant writing services, please visit Grant Writer on Call.

Thanks for visiting!

Jean Campbell