Higgins describes relief available to nonprofits in response to COVID-19
Thu Apr 9, 2020 8:20 PM
The fact sheet details the programs available to help local organizations
Congressman Brian Higgins provides details of the programs made available through the Coronavirus Aid, Relief and Economic Security Act (CARES) to help nonprofits respond to and recover from the COVID-19 outbreak.
“Many of our nonprofit agencies are actively working to meet the needs of our community during this health crisis: to feed the hungry, support families, help the homeless and serve a variety of other purposes,” Higgins said. “The resources available help support staffing and continued operations during the public health emergency. “
Higgins created a fact sheet that summarizes the resources available to nonprofits. Below is an extended version of what is included in the fact sheet:
Paycheque Protection Program: The CARES Act provided for $ 350 billion in financial assistance called the Paycheck Protection Program (PPP), which serves as a gateway for 501 (c) (3) nonprofits that withhold employees and their salaries. PPP will provide no-charge loans at an interest rate of up to 1% of up to $ 10 million that cover salary costs and most mortgage interest, rents and utility costs over an eight-week period. No personal collateral or collateral is required to secure the loan. The loan is eligible for discount if used as prescribed while maintaining staff and salary levels.
More information on the Treasury Department’s Paycheck Protection Program is available at: https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf.
Economic disaster loan: The CARES Act provided $ 10 billion for Economic Disaster Loans (EIDL) and Emergency Economic Injury Grants, programs for nonprofits that have suffered significant economic injuries and are located in a declared disaster area, which includes all of New York State.
An EIDL is a 30 year loan of up to $ 2 million with an interest rate of up to 2.75% for nonprofits to help pay for disaster related expenses. An Emergency Economic Damage Grant is an immediate advance of up to $ 10,000 received within three days of EIDL’s request that does not need to be repaid, even if the business is not. not eligible for EIDL.
Local Small Business Development Centers can provide additional advice to nonprofits in western New York State. For Erie County, visit https://sbdc.buffalostate.edu/ or call 716-878-4030. In Niagara County, go to http://niagarasbdc.org or dial 716-210-2515.
Foreign exchange stabilization fund: The CARES Act established a program to provide financing to banks and other lenders to provide direct loans with an interest rate not exceeding 2% to non-profit organizations with 500-10,000 employees. to support their operations. There are several restrictions associated with this loan, including the requirement to retain 90% of the workforce by September 2020. This loan will not earn interest or require payment for the first six months, but it is not eligible for a loan discount. For more information visit https://home.treasury.gov/cares.
Employee retention tax credit: The CARES Act created an employee retention tax credit, a refundable tax credit for 50% of eligible salaries paid by eligible employers up to $ 10,000 per employee per calendar quarter, including exempt organizations tax, to employees during the COVID-19 crisis. Nonprofits are not eligible for credit if they participate in the Paycheck Protection Program. More information on the employee retention tax credit is available at: https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act.
Unemployment insurance: Self-funded nonprofits will be reimbursed half of the cost of fringe benefits offered to their terminated employees.
Charitable donation: The CARES Act creates a new universal deduction for all taxpayers, regardless of income, for total charitable contributions up to $ 300. This can be taken in addition to your standard deduction, if you don’t itemize.
It also raises the current ceiling on annual contributions for retailers from 60% of gross income adjusted to 100%. For companies, the annual limit can be up to 25%.
Student loans: The Cares Act suspends payments on all federal student loans held by the US Department of Education until September 2020. Borrowers working in 501 (c) (3) organizations will still be able to count those suspended payments within their deadline. 10-year payment under the Public Service Loan Forgiveness Program.
United Way of Buffalo and Erie County: United Way of Buffalo and Erie County is a resource for nonprofits during the COVID-19 pandemic and has created a COVID-19 fund specifically to help 501 (c) (3) and affiliated organizations. For more information, click here.
National Foundation for the Arts: NEA will provide additional funding to arts organizations to support general operating expenses, a waiver of the Arts Foundation’s requirement to support project funding, and recognition of the dire situation facing the arts community. For more information, click here.
National Foundation for the Humanities: NEH received an additional $ 75 million to support state humanities councils and at-risk humanities positions and projects at museums, libraries and archives, historic sites, colleges and universities and others nonprofit cultural organizations that have been financially affected by the coronavirus. For more information, click here.
Institute of Museum and Library Services: IMLS will provide funding to enable libraries and museums to respond to the impacts of the coronavirus by expanding digital network access, purchasing internet accessible devices and providing technical support services to their communities. For more information, click here.
Visit Higgins website for COVID-19 relief fact sheet for non-profit organizations and additional information sheets for families, small enterprises, students and the elderly: https://higgins.house.gov/issues/coronavirus-disease.