CARES 3.5 Enacted
The COVID-19 3.5 relief package has been officially signed into legislation. This relief package adds an additional $484 billion in funding to replenish the Small Business Administration’s Paycheck Protection Program (PPP) along with other previously funded COVID-19 assistance programs. Certain classes of non-profits continue to be eligible to receive funds through the PPP, so this will be welcome relief in helping them manage their economic challenges during the coming months. We have provided additional details and clarifications on the PPP program and encourage you to read our blog regarding these updates.
Listed below is a summary of the funding allocations that will impact non-profits:
1. $310 billion in replenished funds for the PPP, the main tool for providing assistance to non-profits with 500 employees or fewer (or non-profits meeting other eligible qualifying criteria as detailed on our blog). PPP enables non-profits to obtain forgivable loans to cover payroll costs for an eight-week period.
2. An additional $50 billion for SBA’s Disaster Loans Programs Account (EIDL). This loan advance will provide up to $10,000 of economic relief to organizations that are currently experiencing temporary difficulties. More information about this program is available online. To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance and can be used to keep employees on payroll, to pay for sick leave, and pay business obligations, including debts, rent, and mortgage payments.
3. $10 billion for Economic Injury Disaster Grants, while increasing the authorization level for the emergency economic grants from $10 billion to $20 billion. This is the same program as the EIDL but a grant program.
4. $12 billion for PPP administrative costs.
5. $2 billion for SBA salaries and expenses
6. $100 billion in emergency money for our health system, which will be allocated for hospital, health care facilities and fund enhanced COVID-19 testing.
Discussions regarding a COVID-19 Phase 4 relief package to provide additional relief are underway; however, the timing of when an additional package will be enacted is uncertain as of this writing. We will continue to provide updates as they become available.
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