August 7, 2020

PPP Amendment Would LOWER Employee Cap to 150

Thank you to all who urged Congress to include 501(c)(6) organizations in the Paycheck Protection Program (PPP) on fair, equitable terms.

But we have more work to do. This week, Senators Marco Rubio (R-Fla.) and Susan Collins (R-Maine) filed an amendment to their PPP expansion bill that would lower the employee cap for eligible 501(c)(6)s to 150 employees or fewer – down from 300.

To make matters worse for our community, the vague lobbying language we reported earlier this week could potentially, even likely, exclude many organizations with fewer than 150 employees from the PPP. Ten percent is a low threshold for any organization, but, unlike for 501(c)(6) organizations, these proposed restrictions would not apply to businesses and other nonprofits. And, many 501(c)(6)s that employ fewer than 150 people could easily cross whatever ten-percent lobbying threshold the Small Business Administration were to create.

If you haven’t already, now is a critical time to use our template Tweet and automated congressional appeal to urge lawmakers to expand the PPP on fair, equitable terms. We cannot overstate how important your outreach is right now. (Note: If you already sent a congressional appeal for this campaign, the system won’t let you do so again. In that case, please email ASAE staff at publicpolicy@asaecenter.org for additional outreach options.)

Another Amendment Would Impact All PPP Recipients

Senator Rubio filed a separate amendment to prohibit the use of loan proceeds for “lobbying activities.” The amendment expressly prohibits, among other things, “expenditures designed to influence the enactment of legislation, appropriations, regulation, administrative action, or Executive order proposed or pending before Congress or any State government, State legislature, or local legislature or legislative body.’’

As a catch-all provision, we question how feasible it would be to implement effectively and/or without causing delay in relief and immense administrative burden. This provision would apply to ALL PPP borrowers, not just 501(c)(6)s.

Minding Your PPPs and Qs 

As promised, here is the link to register for ASAE’s upcoming PPP education event: Applying to the Paycheck Protection Program: What Your Association Needs to Know. On Tuesday, August 18 at 2:00 p.m. ET, ASAE will host an education session with experts and leading voices in association law, finance and accounting to examine options and how to apply for a PPP loan. 

While legislation remains fluid and negotiations have reportedly stalled, if PPP expansion to 501(c)(6) organizations indeed passes into law, such entities will need to move fast to secure PPP loans and the financial relief they need. We encourage you to consider your options now so, if needed, you can expeditiously pursue PPP loan funds when the time comes.

Reminder: Complete ASAE’s Data Request Form

WE NEED DATA to further demonstrate to Congress why the unfair lobbying restrictions must be lifted, and that any PPP eligibility expansion should replicate terms provided to other eligible entities. We again respectfully ask for your time and support – please complete our data request form as soon as possible to help us 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. Thank you to the more than 500 organizations who have already completed the form.

Your support and ongoing advocacy are invaluable for our community – thank you.

Email publicpolicy@asaecenter.org with questions.