The sixth federal relief package (and third round of stimulus checks to eligible individuals) since the onset of the pandemic was signed by the President earlier this month. The American Rescue Plan Act impacts all of us and covers a wide array of topics in a lengthy $1.9 trillion legislative package. Thanks in part to the resources of the National Council on Nonprofits and other colleagues, we are here to share the highlights that directly impact nonprofits.
Paycheck Protection Program (PPP):
Adds $7.25 billion to the PPP and expands eligibility to nonprofits with multiple locations who employ 500 or fewer employees at each location.
Your Next Move: Submit your PPP application before March 31, 2021.
Economic Injury Disaster Loans:
Adds $15 billion for the Targeted Advance program and gives instructions to the Small Business Administration to send $10 billion to those eligible entities that did not receive full entitled amounts with the remaining $5 billion for organizations suffering an economic loss of at least 50% with less than 11 employees. All to help nonprofits meet operating expenses and financial obligations that could have been met had the disaster not occurred.
Your Next Step: Check for guidance and to see if you qualify to apply.
Shuttered Venue Operators Grant Program (aka Save our Stages Act):
Adds $1.25 billion to aid performance venues, independent movie theaters, and cultural institutions. Allows eligible nonprofits to apply for funds under the PPP and Save our Stages.
Your Next Step: Apply for PPP ASAP. Don’t wait until March 31! And, refer to the SBA website for updates.
Tax Credits:Employee Retention Tax Credits
are extended until the end of 2021. Paid Sick Leave Payroll Tax Credit for paid sick and family leave is extended through September 30, 2021. Employers may now claim the paid family credit up to $12,000 per employee in a year (up from $10,000). Coverage also now includes getting a vaccination and any illness related to vaccination.
Your Next Step: File for credits for 2020. Check out this article by the Council of Nonprofits for more information.
For further information, you can find a section-by-section breakdown of the legislation, and you can read further analysis from our colleagues at the National Council of Nonprofits, including more about the provisions impacting nutrition assistance, health, education, and arts and culture, in this document.
These have been and continue to be challenging times. We are here for you. Please reach out with questions or to discuss how we can help you grow your fundraising success!