Congress has passed several stimulus packages in response to the Coronavirus pandemic. The most recent is the $2.2 trillion stimulus package, the Coronavirus Aid, Relief and Economic Security (CARES) Act. Congress also passed a more traditional aid package known as the Economic Injury Disaster Loan program which is a more traditional SBA loan.
What does this mean for associations?
Some of the key items included, and not included, relative to 501(c) organizations. Below are provisions outlined in ASAE’s One-Page Summary.
Section 1102: Emergency Small Business Loans
- Loans up to $10 million
- Available to help maintain certain operational costs
- Employers must maintain all employees through June 30 to be eligible for loans to be forgiven
- Eligible: small businesses, 501(c)(3)s
- Issued by private lenders
- Application deadline is 6.30.20
- Not Eligible: 501(c)(6)s
Section 1110: Economic Injury Disaster Loans
- Loans up to $2 million
- Loan advance up to $10,000 grant
- Standard requirements for credit have been eliminated
- 30 year repayment plan
- Interest rate on loans is 2.75% for nonprofits
- Eligible: small businesses, 501(c)(3)s, 501(c)(6)s
Section 2205: Charitable Giving Incentive
- Universal deduction of up to $300 available for cash-only, non-itemized tax filings
- Eligible: all small businesses and individuals
Section 2301: Employee Retention Payroll Tax Credit
- Refundable payroll tax credits of up to $5,000/employee
- Employers must provide proof of 50% reduction in revenue in Q1 2020
- Eligible: small businesses, 501(c)(3)s, 501(c)(6)s
Section 2302: Delay in Employer Payroll Taxes
- May defer payroll tax payments over the next two years
- Eligible: all employers
For more information visit The Center For Association Leadership website.