House releases revised COVID relief bill, with provisions helping nonprofits

Democrats in the House of Representatives passed a revised stimulus bill last week that would expand access to Paycheck Protection Program loans for nonprofits and provide aid to localities and states.

The updated HEROES Act totals $2.2 trillion – $1.2 trillion less than the original version of the bill that passed the House months ago but failed to gain approval from the GOP-controlled Senate. The revised bill would set aside 30% of Paycheck Protection Program loans for all nonprofits to access for the first time and would allow nonprofits with more than 500 employees to apply if they can prove sufficient revenue losses, according to a preliminary analysis from the National Council of Nonprofits. Employers with fewer than 200 employees who have experienced significant losses could also access a second round of loans of up to $2 million under the bill.

Aid to states and local governments is also included in the bill, which has been a major request from New York state. The governor has been withholding 20% of funding to localities and nonprofits amid a looming multibillion-dollar deficit, waiting to see if congressional aid is forthcoming before finalizing cuts or restoring funing. 

But even though the House proposed a more modest relief package, a deal with the White House and Senate still seems far off. It’s also not clear if or how President Donald Trump’s battle with COVID-19 will shape ongoing conversations in the future.