What the latest COVID relief package means for nonprofits

The $900 billion relief bill President Donald Trump signed into law on Sunday will offer benefits to nonprofits, including another round of Paycheck Protection Program loans and an extended charitable deduction for people who don’t itemize their taxes.

The package allocates $285 billion for additional PPP loans, but with stricter terms for borrowers. Loan amounts are capped at $2 million and will only be available to borrowers with fewer than 300 employees that have seen a 25% decline in gross receipts during at least one quarter this year. 

This legislation also extends a provision included in the CARES Act enacted this spring, which allows people who don’t itemize their taxes to deduct up to $300 on their charitable donations made during this year. It also extends a provision that reimburses nonprofits that self-insure instead of paying state unemployment taxes. The federal government will continue to cover half the costs of unemployment benefits paid to employees who have been laid off and furloughed from such organizations.

On top of provisions specifically designated to help the nonprofit sector, the package also includes $600 direct payments, enhanced unemployment benefits and expansion of the Supplemental Nutrition Assistance Program.