Act expands PPP eligibility to include 501 (c) (6)’s

The House and Senate passed the Coronavirus Response and Relief Supplemental Appropriations Act on Monday, December 21 to further assist with the economic fallout caused by the coronavirus pandemic.

501 (c) (6)’s, which function as the non-profit status of most GCSAA chapters, are now eligible for PPP through the Act if they meet the federal requirements (1099's are not reimbursable). The CARES Act passed in March of 2019 did not include PPP eligibility for 501 (c) (6)’s. The Act also allows employers to deduct PPP related business expenses. 

Below are some highlights from the Act that encompasses 5,593 pages:

Direct economic relief for workers and families ($286 billion)

Unemployment Insurance: This bill provides an additional $300 per week for all workers receiving unemployment benefits, through March 14, 2021. This bill also extends the Pandemic Unemployment Assistance (PUA) program, with expanded coverage to the self-employed, gig workers, and others in nontraditional employment, and the Pandemic Emergency Unemployment Compensation (PEUC) program, which provides additional weeks of federally funded unemployment benefits to individuals who exhaust their regular state benefits.

Direct Payments: The legislation includes direct payments of $600 per person for adults making up to $75,000 per year and children. This means that a family of four could receive $2,400. The size of the payment decreases for those who earned more than $75,000 per year and disappears entirely for Americans earning more than $99,000. The income levels are based on Americans' 2019 tax returns.

Small Business ($325 billion):

This deal includes over $284 billion for first and second forgivable PPP loans, dedicated set-asides for very small businesses and lending through community-based lenders like Community Development Financial Institutions and Minority Depository Institutions and expanded PPP eligibility for 501(c)(6) nonprofits, including destination marketing organizations, and local newspapers, TV and radio broadcasters. $20 billion is included for new EIDL Grants for businesses in low-income communities, $3.5 billion for continued SBA debt relief payments, and $2 billion for enhancements to SBA lending. This deal also includes $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions.

Transportation ($45 billion)

Funding to provide relief to transit agencies, airlines and airline contractors, airports, state DOTs, the motorcoach industry, and Amtrak. Specifically: $15 billion for airline payroll support, $1 billion for airline contractor payrolls, $14 billion for transit, $10 billion for state highways, $2 billion for airports and airport concessionaires, $2 billion for the private motorcoach, school bus, and ferry industries, and $1 billion for Amtrak. In particular, keeping transit agencies running will allow those who must take transit—essential workers, seniors, low-income and communities of color—to get to work and access services.

Funding for vaccine procurement and distribution, providing roughly $20 billion to BARDA for procurement of vaccines and therapeutics, nearly $9 billion to the CDC and states for vaccine distribution and more than $3 billion for the strategic national stockpile. This includes $300 million specifically directed to high risk and underserved areas for distribution, including communities of color. The bill provides more than $22 billion, all sent directly to states, for testing, tracing and COVID mitigation programs.

Schools ($82 billion)

Democrats secured critical funding for states, K-12 schools, and institutions of higher education that have all been significantly impacted by the coronavirus pandemic. Similar to the CARES Act the emergency education relief funds are reserved as follows:

• Relief for outlying areas and the Bureau of Indian Education: $818.8 million
• Governors Emergency Education Relief Fund: $4.05 billion. Includes a set aside for services to private K-12 schools to be administered by public agencies.
• Elementary and Secondary School Emergency Relief Fund (Public K-12 schools): $54.3 billion
• Higher Education Emergency Relief Fund: $22.7 billion.

Rental Assistance ($25 billion)

These funds will be targeted to families impacted by COVID that are struggling to make the rent and may have past due rent compounding on itself. These families will be able to utilize this assistance for past due rent, future rent payments, as well as to pay utility and energy bills and prevent shutoffs.

Nutrition and Agriculture ($26 billion)

Provides $13 billion to increase SNAP benefits by 15%, provide additional funding for food banks and senior nutrition programs, and to ensure college students have access to SNAP. The bill also included $13 billion for direct payments, purchases and loans to farmers and ranchers who have suffered losses due to the pandemic.

Child Care ($10 billion)

$10 billion in emergency funds for the child care sector through the CCDBG program. These funds maintain the flexibility given to states through the CARES Act and can be used to provide child care assistance to families, and to help child care providers cover their increased operating costs during the pandemic.

Broadband ($7 billion)

$3.2 billion in emergency funds for low-income families to access broadband through an FCC fund.

The above serves as just a small sample of what is included in this massive Act but provides some clarification on key points affecting our daily lives and operations of our golf facilities.   A copy of the full bill is available at https://www.washingtonpost.com/us-policy/interactive/2020/covid-relief-bill-full-text/.