Details on new relief bill, American Rescue Plan Act
Last week, the American Rescue Plan Act of 2021 (H.R. 1319) was signed into law. Some highlights of the American Rescue Plan Act for nonprofits, as summarized by the North Carolina Center for Nonprofits here, include:
Improvements to the Paycheck Protection Program (PPP) Loan Programs. The American Rescue Plan Act allows many larger nonprofits to apply for PPP loans for the first time by extending eligibility to nonprofits with more than 500 employees that operate at multiple locations as long as no more than 500 employees work at any one location. It also allows performing arts nonprofits to apply for both the Shuttered Venue Operators Grant (SVOG) and the PPP with limits on the total amounts they can receive from the two programs.
Extension and Improvement of Federal Unemployment Coverage. The COVID relief package extends various federal benefits for unemployed workers – including coverage for self-employed workers and staff of religious and very small nonprofits and $300 per week supplemental federal payments – through September 6, 2021. These benefits had been scheduled to expire on March 14. Notably for nonprofits, the federal government will cover 75% of the unemployment costs of reimbursing nonprofits from April 1 through September 6; currently, the federal government is only covering 50% of these costs, and the state of North Carolina is covering the other 50%.
Tax Relief for Individuals and Employers. The American Rescue Plan Act provides $1,400 stimulus checks for most taxpayers. It also helps working families by increasing the child tax credit and earned income tax credit. The new law extends the tax credit for nonprofits and other employers that offer paid sick leave and paid family and medical leave through September 30, 2021 (it was set to expire on March 31).
Increased Federal Funding for Various Programs Important to the Work of Nonprofits. The American Rescue Plan Act provides additional funding for child care providers, the Corporation for National and Community Service, arts and humanities organizations, food assistance, housing and homelessness prevention, and nonprofits providing services to survivors of domestic violence and sexual assault.
$340 Billion in Additional Funding for State and Local Governments. This support could help ease financial pressures on cities and counties and provide additional support to state legislators to invest in nonprofits providing COVID relief.
Funding for COVID-19 Vaccines, Treatment, and Testing As Well As Other Public Health Programs. The added investment in these public health measures should significantly reduce the spread of COVID-19.
We expect a number of webinars digging into this new relief package to become available from non-profit, camp, and hospitality industry organizations in the coming weeks, and will share what we see and hear.
Here’s another detailed resource on the non-profit implications in the new act, from Candid for Non-Profits.
