New coronavirus relief bill includes PPP access for all nonprofits

All nonprofits – regardless of size – would be able to access loans through the Paycheck Protection Program under a new bill introduced in the House of Representatives on Tuesday, which would also set aside 25% of the program’s funds for nonprofits.

Of that funding stream, half would be dedicated to charities with 500 or fewer employees and the rest would be available to larger organizations and other nonprofits such as social welfare organizations and labor unions. The bill, known as the Health and Economic Recovery Omnibus Emergency Solutions Act, would also require the Main Street Lending program to include nonprofits. 

Its other provisions would give nearly $1 trillion in aid to state and local governments and another round of relief checks for individuals and families. The bill would also put approximately $200 billion toward offering bonus pay to essential workers facing greater health risks as a result of the pandemic.

The House is set to vote on the bill this Friday, but its viability in the Senate is uncertain. Senate Republicans have warned that it would be dead on arrival, and Senate Majority Leader Mitch McConnell indicated earlier this month that he wanted to wait before considering any other bills. 

Without federal aid, New York state officials have warned that cuts to schools, Medicaid, social services and other priorities will be exacerbated. The Cuomo administration has already warned that the state may cut $8.2 billion in aid to localities.