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Non-Profits May Be Eligible for Deferred, Forgivable Loans Under the CARES Act

Division A, Title I of the CARES Act is titled Keeping American Workers Paid and Employed Act. This provision authorizes $349 billion for loans under Section 7(a) of the Small Business Act (15 USC 636(a)) and makes non-profit organizations eligible for such loans. The loans are designed to cover the cost of payroll; continuation of group health care and related benefits; employee salaries, commissions, or similar compensations; mortgage payments; rents; utilities; and interest on debt incurred prior to the crisis. Furthermore, the loans are forgivable for amounts used for payroll costs, mortgage payments, rent payments, and utility payments. Members with non-profit affiliates or instrumentalities may want to consult with their banking and legal partners and consultants about this and other resources made available through the CARES Act. Additional information on resources available through the Small Business Administration can be found on their website here.