On May 12 the House of Representatives introduced the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act). Nonprofit New York is extremely grateful to the New York Congressional Delegation for their leadership working to expand access for all nonprofits in this next phase of federal legislation.
The HEROES Act would:
Expand access to the Paycheck Protection Program (PPP) for all nonprofits
Not only would this bill lift the cap on eligibility for all 501(c) nonprofits (Division I, Small Business Provision), it also creates a dedicated 25% funding stream reserved for nonprofits organizations:
- Half of that (12.5%) will go to charitable nonprofits with 500 or fewer employees, the current PPP standard
- Half (12.5%) will go to larger 501(c)(3) organizations and all other types of nonprofits, including social welfare organizations, labor unions, and chambers of commerce
Include nonprofits in the Main Street lending program
- Division K, Title VI, would require the Main Street lending program to include nonprofits
- The Federal Reserve would be required to create a low-cost loan option tailored to the unique needs of nonprofit organizations
“Throughout this crisis, I have fought for assistance to nonprofit organizations, including making it one of my top priorities that more nonprofits receive assistance in the CARES 2.0 legislation the House has unveiled,” said Senator Schumer. “The nonprofit sector is critical to New York’s economy and so many of our nonprofits are playing an essential role in our response to this pandemic. Nonprofit organizations that millions of New Yorkers rely on are under great financial strain and need immediate relief from programs like SBA’s Paycheck Protection Program. Working with Speaker Pelosi and House Small Business Committee Chairwoman Nydia Velazquez, we have taken a major step forward in broadening eligibility for PPP to more of our nonprofits, including our larger nonprofits that provide vital social services and are the heartbeat of local economies throughout the state.”
Nonprofit New York thanks Senator Schumer, Senator Gillibrand, Congresswoman Velazquez, Congresswoman Maloney, Congresswoman Lowey, Chairman Nadler, Congressman Engel and the entire delegation for working closely with nonprofits for the past several weeks, meeting with us, and identifying policy solutions to support all New Yorkers.
This bill would provide much needed relief for nonprofits struggling to continue to serve our communities. Nonprofit New York urges Congress to act quickly to include these reforms to support all nonprofits in the next phase of legislation. Together, we will overcome COVID-19.