CARES Financial Relief for Nonprofits
The Paycheck Protection Program will enable eligible nonprofit organizations that have been adversely affected by the COVID-19 pandemic to obtain funds to cover payroll, rent, interest, and utilities. For further information on the Paycheck Protection Program, please refer to Small Business Relief Through the Paycheck Protection Program. The SBA has also provided specific guidance stating that faith-based organizations, including houses of worship, are eligible to receive loans under the Paycheck Protection Program and the Economic Injury Disaster Loan Program. For further information specific to faith-based organizations, please review our previous article SBA Clarifies Religious Organizations May Seek Paycheck Protection Loans or the SBA Faith Based FAQs Sheet.
Additionally, nonprofit employers will also be eligible for refundable payroll tax credit relief and deferral of payroll taxes as described in Business Tax Benefits.
Finally, nonprofit organizations that employ 500–10,000 employees may also be eligible to apply for and obtain loans under the “mid-sized business” loan program established and funded by the $454 billion allocated to the U.S. Treasury on the same terms and conditions as similarly sized for-profit businesses (loans bearing a maximum rate of 2% with no principal or interest due for six months) For further information on the “mid-sized business” loan program, please refer to relief for Larger Distressed Companies.
Our Chambliss team will continue to monitor the developments regarding the CARES Act. Please contact Jim Catanzaro, Justin Furrow, or your relationship attorney if you have questions or need additional information.
Visit our COVID-19 Insight Center for our latest legislative and legal updates, articles, and resources.
The material in this publication was created as of the date set forth above and is based on laws, court decisions, administrative rulings, and congressional materials that existed at that time, and should not be construed as legal advice or legal opinions on specific facts. In some cases, the underlying legal information is changing quickly in light of the COVID-19 pandemic. The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, a lawyer-client relationship. Please contact your legal counsel for advice regarding specific situations.