American Rescue Plan of 2021 Expands Paycheck Protection Program to Additional Nonprofit Entities
President Biden recently signed the $1.9 trillion American Rescue Plan Act of 2021, H.R. 1319 (the “Act”) into law on March 11, 2021. The Act will send aid to millions of Americans still recovering from the global COVID-19 pandemic. The Act modifies certain provisions of the Paycheck Protection Program (“PPP Program”) in a number of ways, including, but not limited to, expanding the eligibility of certain nonprofits to participate in the PPP Program. Section 5001 (Modifications to Paycheck Protection Program) of the Act amends the PPP Program as follows: 1. Section 5001(a)(1) of the Act expands the eligibility of nonprofits to include a new category termed “additional covered nonprofit entity” – which are nonprofits listed in Section 501(c) of the Internal Revenue Code other than 501(c)(3)s, 501(c)(4)s, 501(c)(6)s, or 501(c)(19)s – to receive an initial PPP Program, provided that: The organization does not receive more than 15 percent of receipts from lobbying activities; The lobbying activities do not comprise more than 15 percent of activities; The cost of lobbying activities of the organization did not exceed $1 million during the most recent tax year that ended prior to February 15, 2020; and The organization employs not more than 300 employees. In addition: Larger nonprofits are now eligible for the PPP Program by striking the application...