CARES Act Resources

United Way of Central Indiana is offering resources and support to help the human services network navigate the CARES Act.

CARES Act webinar with Barnes & Thornburg

April 2, 2020

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Paycheck Protection Webinar with United Way & LISC

April 8, 2020

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PAYCHECK PROTECTION LOANS UNDER THE CARES ACT (Coronavirus Aid, Relief and Economic Security) 


Note: This is United Way’s interpretation of the Paycheck Protection Loans (PPP Loans) guidance. We strongly recommend that you speak with your lender regarding your specific application.  


The $349B available through the SBA as part of the CARES Act includes 4 different elements: 


This information relates ONLY to PPP Loans. It is important for nonprofits to understand how the other three elements intersect with PPP Loans if they are pursuing any or all options. 


SBA 7(a) Paycheck Protection Program Under the CARES Act stimulus bill: 


“Payroll Costs”  






All Allowed Uses, except: 

  • Non-Payroll Costs limited to 25% 
  • Non-mortgage debt interest excluded 


Incurred in 8 weeks starting at loan origination 


Reduced by: 

  • Reduction in average head count v. base period  
  • Reduction of any employee compensation by more than 25% v. base period 
  • If a business re-hires or restores salaries before June 30, 2020 forgiveness determined without regard to the previous reduction.​ 


Next Steps:


1. Determine if your board must approve the loan application and if so, convene your board immediately. Your organization’s bylaws will help determine if the board must approve this loan application.  

2. Develop a relationship with a qualifying local lender ASAP, especially if you don’t yet have one, since loans are made directly through local 7(a) lending institutions.  

3. Look into PPP loans first, due to the larger funding amount and forgivable provision. 

4. Prepare your documents.  

5. Consider whether you can take advantage of any other COVID-19 relief programs.  








1. If you currently have state/federal grants that are paying for salaries & benefits are you able to apply for the PPP since the next 6+ months are unknown and you might need these funds going forward.   


Your organization is required to certify that “current economic uncertainty makes this loan request necessary to support the ongoing operations”  AND that “the funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments as specified under the Paycheck Protection Program Rule” According to UWW, Grant funded positions apply, so long as the person is on your payroll. Regardless origin of funds…, you are responsible for their payroll expenses.” 


2. In relations to the PPP loan forgiveness, what are the details required to be eligible for the loan forgiveness?  Specifically for nonprofits.  


Parameters for forgiveness are as follows and are applicable to all PPP loans (including nonprofits): 

Certain costs incurred in the 8 weeks beginning on the date of loan origination: 


  • Payroll Costs (as defined, generally compensation up to $100k, group health benefits, retirement benefits, state/local taxes imposed on employee compensation) – collectively must be at least 75% 
  • Mortgage interest, Rent and Utilities (that were already in place as of 2/15/20) – collectively no more than 25%


3. How will non-profits receive the potential forgiveness seeing as they are not taxable entities and the tax credits will not be applicable? 


Organizations will receive their full approved loan amount from their financial institution. Upon forgiveness, the relevant federal entity (SBA, Treasury, etc.) will pay the forgiven amount directly to the financial institution, thus relieving the borrowing organization from their repayment obligation.  


4. Can the PPP that we apply for, for our non-profit add staff we have not yet hired but want to hire? 


The loan calculation itself is based on a lookback period – 2.5x your average monthly payroll for the previous 12 months. It can be used to pay for new hires subsequent to loan origination. 


5. I also wanted to follow-up to see if you were able to learn more about incentives for philanthropic giving. Any insight would be greatly appreciated! 


The CARES act did also include a provision for up to an additional $300 charitable deduction for non-itemizers.