Vote to Apply SBA EIDL Loan 2020
* Carl Karsten
* Andrew Camardella * Theo Tetzlaff
Quorum: 46 Yea Votes: 71 Nay Votes: 24 Present or Abstain: 3 Total Votes: 98
[Nov 29 2021]
Vote Announcement and Beginning Date of the Discussion Period
[Nov 30 2021]
Language Lock Date and Start of Voting
[Dec 9 2021]
Day of the Vote
[Dec 14 2021]
Date the Board has assigned for the vote. The Day of the Vote is the day the vote closes.
PS1 has the opportunity to benefit from attractive Federal Government lending programs to support organizations impacted by COVID-19. One such program is the SBA EIDL Loan program, under which PS1 has the eligibility to borrow up to $512,000 based on our operating expenses as reported on our 2020 IRS 8879-EO filing.
The loan terms are 2.75% interest with a 30 year term and the first two years of payments deferred. It is the Treasury’s intention to use these funds in accordance with the SBA EIDL program, while simultaneously putting a roughly equivalent amount of displaced gross receipts into an income-earning investment account to yield a conservative return and pay off the interest costs. These details will be another vote. This vote only lets us go forward with the loan application process.
These funds are not intended for immediate use, or even for recently upcoming projects. It is anticipated that PS1 will continue to operate its budget out of current receipts, and that these funds will be allowed to grow so that their interest is allowed to significantly grow and compound. This program enables PS1 access to an attractive lending resource while it is available. The EIDL program closes December 31 st of this year, and is unlikely to be renewed.
It will give us the ability to survive more and larger rainy days, at the cost of having to put some effort into applying for the loan and figuring out how to manage the funds if we get them. I anticipate we will find a set it and forget it program that will not require ongoing effort of any PS1 members or officers, other than it will be another number on the treasurer's report to the board.
Language of the Vote
The PS1 members authorize the PS1 treasurer, Carl Karsten, on behalf of PS1 to apply for a loan under SBA’s Economic Injury Disaster Loan Program for as much as PS1 qualifies for, up to $512,000.