Associations again excluded from small business aid
Associations again excluded from small business aid
- April 21, 2020 |
- Walt Williams
A proposed deal to inject more money into the federal Paycheck Protection Program is moving forward without language to expand eligibility for 501(c)(6) associations and chambers of commerce, according to ASAE.
The White House and congressional leaders announced Tuesday they had reached a deal on a nearly $500 billion stimulus package, including $310 billion to replenish the now-depleted PPP. Many associations were excluded from the small business loans—which can be forgiven if employees are retained—when it was created under the first stimulus package. In recent days, many of those same groups have pressed lawmakers to open up eligibility to 501(c)(6) organizations and other nonprofits currently unable to tap into the fund. (Professional groups and other nonprofits incorporated as 501(c)(3) organizations have been eligible for the loans.)
Associations would remain ineligible for PPP funds under the second stimulus package, an ASAE spokeswoman told CEO Update. Details about what changes were being made to the program were hazy as of Tuesday afternoon.
ASAE has warned lawmakers that some associations' very existence may be in doubt if they do not receive federal aid to offset lost revenue from canceled meetings, training programs and memberships. The group asked lawmakers for $25 billion in assistance in March 23 letter to congressional leaders. On April 14, more than 4,300 organizations signed a letter seeking assistance for associations.