SBA PPP Loan Provides Lifeline to Nonprofit Foster Care Community

In 1988, a group of Seattle-based social workers founded the nonprofit organization Treehouse on the belief that kids in foster care deserve a community that is committed to their success. Funded by bake sales and car washes, they started small, purchasing little things such as birthday presents and school supplies.

Over time, Treehouse grew from a few dedicated social workers to a full-time staff of more than 100 employees and a network of 3,000 volunteers, all of whom serve more than 8,000 youths in foster care across Washington state. Treehouse relies on the generosity of the community and a limited number of state contracts to fund its programs, which focus on all aspects of the youths' academic and economic successes.

March 18, 2020, was set to be Treehouse’s largest annual fundraiser, which traditionally raises $1 million to help fund the nonprofit’s programs. Unfortunately, when the COVID-19 pandemic hit, Treehouse had to cancel the fundraiser. While donors continued to be supportive, many could no longer contribute the same level of financial assistance, leaving Treehouse programs and staff vulnerable.

Treehouse Executive Director Lisa Chin turned to SBA’s Paycheck Protection Program (PPP) for help. The forgivable SBA-guaranteed loan program helps businesses and 501(c)(3) nonprofits impacted by the pandemic keep trained staff on payroll. Treehouse received the funds within seven days.s.

The PPP loan allowed the organization to maintain the same level of personnel and continue to serve the many youths in its programs.

“I can’t tell you how thrilled we were to get the PPP loan from SBA,” Chin said. “It’s made a world of difference. We’re in a brand-new world, and the fact that PPP is available in these interesting and unprecedented times, it’s a gift.

“Even if you don’t think it’s for you, you should try,” Chin added. “We live on the philanthropy of others. We’re able to serve because of the generosity of others. In this case, it’s been our government that’s stepped up.”