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A COVID-19 Relief Update from Washington, D.C.

The latest from ASAE's public policy team

As Democrats in Congress prepare their next COVID relief package, the House Small Business Committee (HSBC) released a proposal that includes important provisions for our community:

  1. Most 501(c) nonprofit organizations would gain access to the Paycheck Protection Program (PPP), not just 501(c)(3) and 501(c)(6).
  2. The “affiliation rules” would be lifted for 501(c)(3) and 501(c)(6)organizations. This means that an organization’s headcount would be considered “per physical location” rather than in-total and across all locations. As such, a 501(c)(3) with more than 500 employees and/or a 501(c)(6) with more than 300 employees – but at multiple locations – would be eligible for PPP.
  3. An additional $7.25 billion would be made available to the PPP.

Unfortunately, the proposal does not extend the PPP’s current March 31 deadline. As Democrats hope to pass the COVID package by mid-March, the subsequent and very short timeframe before PPP expiration could prove challenging for new applicants and organizations that need a second loan.

IMPORTANT: The proposal does not clarify any language or definitions related to the lobbying eligibility criteria – nothing has changed since the original language passed last December.

The American Society of Association Executives (ASAE) and the state societies of association executives (SAEs) continue to engage Congressional staff to help extend the PPP and clarify language related to the association community.

For more information, please read the HSBC’s section-by-section overview and legislative proposal.

Additionally, beyond changes to the PPP regulations, the proposal includes more support for American businesses and nonprofits:

  • Provides an additional $15 billion for the Economic Injury Disaster Loan Advance (EIDL) program;
  • Creates a $25 billion Restaurant Revitalization Fund to provide grants of up to $10 million for restaurants and other food and drink establishments; and
  • Creates the Community Navigator Pilot Program whereas organizations could partner with the Small Business Administration (SBA) and utilize grant funding to help improve awareness of and access to COVID relief programs.

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