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Nonprofit Associations Need Support in Next COVID-19 Relief Measure

by Government Affairs Team | Jul 06, 2020

On July 1, GCSAA joined nearly 2,500 signatories in urging Congress to extend support to nonprofit associations during COVID-19. Specifically, GCSAA and others called for Congress to include nonprofit 501(c)(6) organizations in the Paycheck Protection Program (PPP), and to reauthorize the PPP until at least the end of 2020. Additionally, GCSAA called on Congress to pass the Pandemic Risk Insurance Act of 2020.

PPP was a novel provision of the CARES Act, a $2 trillion stimulus package passed in March 2020 to address the economic impacts of COVID-19. PPP allocated nearly $350 billion in loans for small businesses that can be converted into grants as long as businesses use the funding to maintain their payrolls. Both the establishment of PPP and its late stage reform in April did not include 501(c)(6) organizations in the list of small businesses eligible for relief, leaving tens of thousands of organizations and American workers without financial support during the crisis.

On June 30, Congress passed an additional bill extending the deadline to apply for PPP loans. This provision excluded 501(c)(6) organizations as well. 
On the passage of the PPP application extension bill, House Committee on Small Business Ranking Member Steve Chabot (R-OH) commented “Passage of this bill is welcome news, especially as many small businesses continue to face an uphill climb on the road to economic recovery.”

Though thousands of member organizations are not eligible for PPP, you might be. If you have not yet applied for PPP loans, you have until August 8 to do so. Visit the Small Business Administration website for more information about the loan application process.

GCSAA also urged the support of the Pandemic Risk Insurance Act of 2020, a bill that allows companies to purchase pandemic-related business interruption insurance so that they can continue to keep workers employed during future public health emergencies. The bill was introduced in the House in May but has received little attention since.

For more information, contact Bob Helland, director of congressional and federal affairs.