July 24, 2020
We need your help to continue our momentum in Congress and build increased support for nonprofit associations, as well as the nonprofit sector and economy at large, in the next COVID-19 relief package.
Contrary to expectations, Senate Republicans were forced to delay rollout of their $1 trillion coronavirus economic relief package yesterday after failing to resolve policy disagreements with the White House. While the situation remains fluid, Senate Republicans reportedly will announce their proposal next week.
Among many provisions, including several ASAE called for in its July 21 letter, there is a decent chance the forthcoming proposal will expand Paycheck Protection Program (PPP) eligibility to include 501(c)(6) nonprofit associations. HOWEVER – initial, proposed language will likely include nonprofit associations on an extremely limited and far narrower basis than those currently eligible for PPP loans. Specifically, Senate Republicans are considering eligibility restrictions that would severely limit or outright preclude much-needed relief for most of the nonprofit association community:
- Employee caps of no more than 1/10 the size of organizations currently eligible;
- Maximum loan amounts of no more than 1/20 of loan amounts provided to organizations currently eligible;
- Expanded lobbying restrictions that could potentially exclude salaries for state-registered lobbyists (in addition to federally-registered lobbyists) from PPP loan term calculations; and
- Expanded lobbying restrictions that would exclude funds used for “lobbying activities,” which could potentially apply to employees who are not registered lobbyists and do not lobby as a job function.
WE NEED DATA to further demonstrate to Congress why these unfair restrictions must be lifted, and that any PPP eligibility expansion should replicate terms provided to other eligible entities. Please keep in mind that these initial, proposed restrictions could change and improve – particularly with enough data and input from our nonprofit association community regarding the issue of fairness and the need for broader assistance.
We again respectfully ask for your time to please complete our data request form as soon as possible. Your assistance will help us to unequivocally demonstrate our community’s need and help save imperiled organizations. While not exhaustive, the form is somewhat long out of necessity. We greatly appreciate your patience as you complete the form to the best of your knowledge.
Email email@example.com with questions.