An Update on Washington's Support of Pro-501(c) Legislation
Democrats have introduced legislation aimed at helping nonprofits
Today, Democrats in the House of Representatives released a proposal for the next phase of major COVID-19 relief legislation – the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. As written, the HEROES Act includes all Section 501(c) organizations in the Paycheck Protection Program (PPP). Any nonprofit with 500 or fewer employees will be able to apply for PPP funds. Following are other notable provisions, among many, that are relevant to our community:
- The covered period for PPP loans would be extended to December 31, 2020;
- PPP funds could be stretched over 24 weeks instead of the eight weeks originally passed in the CARES Act;
- Businesses and organizations that receive PPP loans would be allowed to defer payroll tax payments;
- Coordination between the PPP and Employee Retention Tax Credit would be improved to “ensure borrowers can take advantage of both types of assistance;” and
- The legislation would direct the Federal Reserve to create a nonprofit-specific program within the Main Street Lending Program.
While this is a considerable development, the need for steadfast advocacy remains to ensure associations and nonprofits gain access to the PPP.
“Associations have been working to help prop up the nation’s essential industries and professions without a financial safety net during the COVID-19 pandemic, and many are struggling to maintain basic operations such as payroll, mortgages and rent," said Susan Robertson, CAE, ASAE’s president and CEO. "Elements of this package will obviously require reconciliation with the Republican-controlled Senate where there is bipartisan support for assisting the association community during this economic crisis. ASAE urges Congress to act swiftly to resolve differing priorities in the next round of COVID relief legislation and affirm the support associations need to weather this pandemic.”
ASAE staff is further reviewing the proposal and will continue to update our members and other stakeholders with additional information as legislative talks progress. According to reports, the House is likely to vote on this package on Friday.
"On behalf of ASAE and OSAE, I'd like to thank all our members for their unwavering advocacy to help build support for this critical issue amid such a challenging time," said OSAE President & CEO Jarrod A. Clabaugh, CAE.