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Mar 26, 2020 | Insights

National Council of Nonprofits Releases Analysis of CARES Act

Latest Update: April 1, 2020: Read Independent Sector’s new release on how nonprofits can apply for CARES.

The National Council of Nonprofits has released their analysis of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This bill was passed by the Senate and is scheduled to be voted on by the House on Friday, March 27.

Provisions that nonprofits should be aware of include:

  • Emergency Small Business Loans with a clause that allows employers that maintain employment between February 15 and June 30 to be eligible to have their loans forgiven, essentially turning the loan into a grant. Loan funds could be used to make payroll and other associated costs, including health insurance premiums, facilities costs, and debt service. These loans are only eligible for nonprofits with 500 or fewer employees. The final bill does not include a provision from earlier drafts that would have disqualified nonprofits that are eligible for payments under Title XIX of the Social Security Act (Medicaid).
  • Economic Injury Disaster Loans (EIDL) for nonprofits with 500 or fewer employees to get checks for $10,000 within three days.
  • Expanded Unemployment Insurance to include coverage for workers who are furloughed, gig workers, and freelancers. Under this provision, unemployment payments are increased by $600 per week for four months on top of what state unemployment programs pay.
  • Lowered the amounts that employers must pay for paid sick and family leave under the Families First Coronavirus Response Act (enacted March 19).

Read their analysis here.