What the latest COVID-19 relief package has in store for nonprofits

Congress has approved its latest COVID-19 relief package – to the tune of $1.9 trillion – with plenty of provisions affecting nonprofits in New York and beyond. Here are the most significant provisions of interest to the sector:

Expanded Paycheck Protection Program: An extra $7.25 billion will be available for businesses and nonprofits through the loan program. Eligibility has also expanded to nonprofits that don’t employ more than 500 employees at a given physical location. Also newly eligible for loans are other types of tax-exempt organizations, such as business associations. 

Aid for states and localities: New York is set to get $100 billion from the package, which includes $23.8 billion in aid for the state, localities and Metropolitan Transit Authority. The state government is on track to receive about $12.5 billion of that amount, while $6 billion will be for New York City. The influx of funds will likely play an important role funding and supporting nonprofits reliant on government funds.

Unemployment insurance support: The package extends support for nonprofits that chose to reimburse unemployment costs instead of paying unemployment taxes. After covering half of those payments since the passage of the CARES Act last year, the federal government will cover 75% of the costs starting in April. This support is also extended until Sept. 6.

What else to know: The package extends the 15% increase to the Supplemental Nutrition Assistance Program and allows states to continue the Pandemic-EBT initiative – which gives free meals to families whose children’s schools are closed – through the summer. The child tax credit will be expanded and become fully refundable. More direct payments of up to $1,400 will be given, and weekly unemployment benefits will increase by $300.