Congress Passes Additional Federal Relief

On Monday, December 21, Congress passed a stimulus package to provide additional relief related to the COVID-19 pandemic. Important provisions for nonprofits were included in response to coordinated national nonprofit advocacy. Key nonprofit provisions include:

  • Second draw PPP loans: The bill provides $284 billion for Paycheck Protection Program (PPP) loans. Nonprofits may qualify for an additional loan of up to $2 million if they 1) employ fewer than 300 people; and 2) experienced a decline in gross receipts of 25% in one of the four quarters in 2020 compared to the same quarter in 2019. The bill expands the list of eligible loan expenses to include personal protective equipment, facilities modifications, and other worker protection expenditures, and simplifies the forgiveness application process for loans up to $150,000.
  • Unemployment insurance forgiveness: The bill extends the 50% federal financial forgiveness of unemployment insurance costs for self-insured nonprofits through March 14, 2021. As a reminder, the FY21 state budget extended the payment deadline for these costs owed to the Commonwealth to June 30, 2021.
  • Charitable Giving Incentive: The bill extends the federal $300 above-the-line charitable deduction through 2021, and includes a $600 deduction for couples filing jointly. The bill also extends for one year the previous stimulus law’s increased limits on deductible charitable contributions for individuals who itemize and for corporations.

In addition to these important nonprofit provisions, the bill also included $600 stimulus checks to individuals and $1,200 to couples, an additional $300 per week in unemployment benefits through March 14, extend the moratorium on evictions for one month, and provide critical funding for childcare, nutrition assistance, rental assistance, and funding for vaccine distribution. With questions or for more information, please contact MNN’s Director of Government Affairs, Danielle Fleury.