Bend the Arc - A Jewish Partnership for Justice

According to the Bend the Arc – A Jewish Partnership for Justice (BTA-JPJ) audit of June 30, 2021 (Note 4, Related Party):

"BTA-JPJ has amounts due from Bend the Arc – Jewish Action, a related party, totaling $850,559 and $1,451,043 as of June 30, 2021 and 2020, respectively.

"BTA-JPJ made grants of $3,200,000 and $2,600,000 to Bend the Arc – Jewish Action during the years ended June 30, 2021 and 2020, respectively."

[Note: CharityWatch's rating of Bend the Arc – A Jewish Partnership for Justice does not include the financial activities of Bend the Arc – Jewish Action, a 501(c)(4) social welfare organization (tax ID #46-0539726). CharityWatch does not rate Bend the Arc – Jewish Action at this time. The $3.2 million grant BTA-JPJ made to its related 501(c)(4) entity, per audit Note 4 cited above, comprised approximately 60% of BTA-JPJ's total program spending in fiscal 2021.]

According to the Bend the Arc – A Jewish Partnership for Justice (BTA-JPJ) audit of June 30, 2021 (Note 11, Loan Payable – Paycheck Protection Program):

"BTA-JPJ received a $893,154 loan through the U.S. Small Business Administration's Paycheck Protection Program (PPP Loan) on April 28, 2020. The PPP Loan program was authorized as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020. ... The PPP Loan and accrued interest are eligible to be forgiven if BTA-JPJ maintains its employee count and salary level; and uses the funds for payroll and payroll related costs, interest on mortgages, rent, and utilities; and if 60% of the loan proceeds are used for payroll and payroll related costs.

"The terms of the PPP Loan indicate BTA-JPJ must utilize the proceeds for previously mentioned qualifying expenses during a period not to exceed twenty-four weeks from the time the funds were received. The PPP Loan agreement also states that BTA-JPJ must repay any unforgiven portion of the PPP Loan principal, plus interest accruing at a rate of 1% per annum, over the course of two years from the date of receipt. In accordance with the CARES Act, all principal and interest payments were deferred for six months.

"On January 11, 2021, the U.S. Small Business Administration reopened the Paycheck Protection Program. On February 4, 2021, BTA-JPJ was granted another loan in the amount of $688,682, pursuant to the PPP.

"BTA-JPJ has elected to account for the PPP Loans as a financial liability...which prohibits BTA-JPJ from recognizing forgiveness of the loan and gain on extinguishment until they are released as the primary obligator. In July 2021 and January 2022, BTA-JPJ applied for and received forgiveness of the first and second PPP Loans and related accrued interest, respectively, from the Small Business Administration. BTA-JPJ has recognized the amount of loan forgiveness as Extinguishment of Debt during the year ended June 30, 2022."