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How federal legislation can help non-profits support employees during COVID emergency

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How federal legislation can help non-profits support employees during COVID emergency

The recent legislation known as the CARES Act provided a third emergency supplemental of funding and included direct help to people and businesses on the ground suffering the economic impacts of the pandemic.

We have seen a number of great resources from organizations to help beneficiaries understand how to access these supports which we are eager to share.

First, for individuals the Washington Post published an article on the process for receiving individual payments of adults making up to $75,000 and the IRS has a summary of these Economic Impact Payments as well.

For small non-profits (under 500 employees) which can benefit from both federal loans and loan forgiveness for maintaining staff on payroll, the Chamber of Commerce has a detailed document including who is eligible, what lenders will be looking for, the amount that can be borrowed and how forgiveness will work.

The Overdeck Family Foundation provided additional information on the importance of knowing many loans will be provided on a first come first served basis, with advice to check the SBA website for the Paycheck Protection Program loan application sample and to reach out to a local SBA loan lender to build a relationship. Applications begin April 3. Low-interest disaster loans for private non-profits can be applied for right now on the SBA website here. If organizations want to apply for both loans, they can only do so if each loan is for a different purpose.

For all non-profits including larger non-profits, Independent Sector breaks down business details including unemployment insurance, the charitable deduction, small non-profit relief funds, and large non-profit relief funds which can pay for up to 50 percent of wages to employees in businesses fully or partially suspended during a shut down order or whose gross receipts are 50 percent or more reduced from the same quarter last year.

The National Council for Non-Profits has also put out an important summary of the CARES legislation, including the Industry Stabilization fund for loans to mid-sized non-profits sustaining more than 90 percent of their workforce with a non-forgivable but low interest rate of under 2 percent.

In addition to Federal Funding US Based Foundation that serve non-profits are offering funding opportunities. The organization Candid is collecting many of these opportunities on their webpage.

Feel free to visit the Afterschool Alliance COVID resource pages for more information that we are summarizing and collecting from the field.

Additionally, we continue to collect information of how the COVID emergency is affecting your program including how these policies do or don’t provide the support you need to continue your work. Reach out to our team to tell us your experience.

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