Coronavirus Aid, Relief, and Economic Security Act (CARES ACT)
By America's Charities on April 27, 2020
On March 6, Congress approved an initial emergency aid package totaling $8.3 billion. The Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6074) increased funding for testing of the COVID-19 virus and lowered costs for related medical treatments.
On March 18, the Families First Coronavirus Response Act (H.R. 6201) passed Congress and was signed into law by President Trump. A summary of H.R. 6201 can be found here.
The CARES ACT (H.R. 748) contains several provisions that are relevant to nonprofit organizations and the communities they serve.
On Thursday, April 23, Congress passed a bill providing additional funding to the Small Business Administration’s section of the CARES Act that applies to nonprofits. This bill adds an additional $310 billion to the Paycheck Protection Program (PPP) to keep workers at small businesses and nonprofits employed amid the economic downturn and the COVID-19 pandemic.
Nonprofit organizations with more than 500 employees (broadly defined) are ineligible for this program. However, due to successful advocacy by nonprofits across the country and our advocacy partners like Independent Sector, the final legislation does not exclude nonprofits that receive Medicaid reimbursement. Those organizations are eligible to apply for these SBA loans to help meet their financial needs during this crisis.
We encourage you to follow Independent Sector for updates and to join them for calls for more nonprofit support. Click here for their latest statement. The US Chamber of Commerce has also created a really good "Briefing on Emergency Coronavirus Funding" resource you can access here. TSNE has also been keeping an updated resource page here dedicated to helping nonprofits understand this bill and apply for funding.