Step Up Women'S Network

“The organization is a nonprofit public benefit corporation organized under the laws of california and, as such, is exempt from federal and state income taxes under internal revenue code (irc) section 501(c)(3) and corresponding state provisions. The organization recognizes the financial statement benefit of tax positions, such as filing status of tax-exempt, only after determining that the relevant tax authority would more likely than not sustain the position following an audit. The organization is subject to potential income tax audits on open tax years by any taxing jurisdiction in which it operates. The statute of limitations for federal and california state purposes is generally three and four years, respectively.”

“In march 2020, congress passed the paycheck protection program (ppp), authorizing loans to small businesses for use in paying employees that they continue to employ throughout the covid-19 pandemic and for rent, utilities and interest on mortgages. Loans obtained through the ppp are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. In may 2020, the organization received a loan in the amount of $417,302 through the ppp. To the extent it is not forgiven, the organization would be required to repay that portion at an interest rate of 1% over a period of two years, beginning march 2021, with a final installment in april 2022. Management expects that the entire loan will be used for payroll, utilities and interest; therefore, management anticipates that the loan will be substantially forgiven. As of december 31, 2020, the organization has spent the full amount of the ppp loan on qualifying costs and has chosen to recognize the loan as forgiven, recognizing the forgiveness revenue. Final approval of any loan forgiveness amount is subjected to the small business administration, which management believes will be granted in full. Subsequent to year-end, the company entered into a second loan agreement for $253,317 through the ppp in february 2021. Loan proceeds are expected to be used primarily for payroll costs and to retain workers. The loan agreement provides for the forgiveness of all or a portion of the loan in accordance with program guidelines. To the extent it is not forgiven, the organization would be required to repay that portion at an interest rate of 1% over a period of five years, beginning december 2021, with a final installment in february 2026.”