Nonprofits and the CARES Act
On March 27 the House passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act (AKA the $2 Trillion Stimulus or Relief Package) and the President signed it into law. Embedded within the CARES Act are three distinct loan programs that charitable nonprofits can use to get cash required for their missions.
The Paycheck Protection Program is an emergency loan program based on the SBA’s longstanding 7(a) loan process, but with major enhancements that will assist nonprofits.
The Expanded Economic Injury Disaster Loan (EIDL) & Emergency Grants (SBA 7(b) Loans) applies looser credit standards than the EIDL has had and creates a rapid grant procedure that could put $10,000 in a nonprofit’s hands within three days to pay salary and operating expenses.
A promised Mid-Size Loan Program may help nonprofit and other entities with between 500 and 10,000 employees to retain at least 90% of their workforce.
Source: Nonprofit Quarterly
Tim Delaney.
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