New COVID-19 House Bill Introduced: HEROES Act
The House Democratic leadership introduced a bill yesterday to expand on COVID relief efforts.
As written, the HEROES Act includes all Section 501(c) organizations in the Paycheck Protection Program (PPP). Any nonprofit with 500 or fewer employees will be able to apply for PPP funds. Following are other notable provisions, among many, that are relevant to our community:
- The covered period for PPP loans would be extended to December 31, 2020;
- PPP funds could be stretched over 24 weeks instead of the eight weeks originally passed in the CARES Act;
- Businesses and organizations that receive PPP loans would be allowed to defer payroll tax payments;
- Coordination between the PPP and Employee Retention Tax Credit would be improved to "ensure borrowers can take advantage of both types of assistance";and
- The legislation would direct the Federal Reserve to create a nonprofit-specific program within the Main Street Lending Program.
This bill is expected to pass the House this Friday, but the whole bill is likely be to be changed in significant ways to pass the Senate. Now is a good time to follow up with your Congressional representatives to thank them for their efforts and to reach out to your Senators to urge them to maintain the PPP changes in the final package.Also, now is the time to begin preparing your documentation should the bill pass. When the initial CARES Act was passed, the stimulus money was gone almost immediately. We urge all our components to begin NOW so if it passes, you are ready. We suggest you reach out directly to your banking institution to discuss directly with them. You can also find information on necessary documentation and others information required at the U.S. Small Business Administration landing site: www.sba.gov/funding-programs/loans/....
For more information about ASAE's advocacy efforts, please link HERE.