CEO DATELINE - Stimulus bill would make PPP loans available to many 501(c)(6) organizations
CEO DATELINE - Stimulus bill would make PPP loans available to many 501(c)(6) organizations
- December 21, 2020 |
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Kathryn Walson
After months of advocating for 501(c)(6) associations to be included in the Paycheck Protection Program, ASAE said Monday that many associations that were previously excluded from PPP will now be eligible as part of the COVID-19 relief bill that Congress is expected to pass today.
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The $900 billion aid package includes $257 billion for PPP, to be administered by the Small Business Administration. And it expands PPP loan access to include 501(c)(6) organizations with 300 or fewer employees, 15% or less in lobbying activities and receipts, and less than $1 million in spending for lobbying activities, according to an ASAE press release.
ASAE "vigorously" opposed the $1 million lobbying cap, which the group called "problematic" for a number of associations.
"This year-end relief package qualifies as progress," ASAE CEO Susan Robertson said in a statement. "However, there are many deserving associations that will find themselves still unable to qualify for PPP loans because of the conditions ... in this bill. No legitimate, well-purposed association should be left in the cold simply because they exercise their First Amendment rights to advocate on behalf of the industries or professions they represent."
Since the CARES Act passed in March, ASAE has advocated for PPP to include 501(c)(6) organizations, which include trade associations, professional societies, chambers of commerce, business leagues and others. Associations classified as 501(c)(3)s have been eligible.
PPP loans are forgivable and must be used to cover payroll expenses.
The last round of PPP funding ended Aug. 8. As of that date, more that 5 million loans had been approved, totaling $525 billion, according to the SBA. The average loan size was roughly $100,000.
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