President Biden Signs American Rescue Plan Act

On March 11, 2021, President Biden signed the $1.9 trillion American Rescue Plan Act of 2021 (ARPA) into law. The Act is one of the most significant stimulus and economic recovery programs in U.S. history, and it includes several important provisions that impact nonprofit organizations and the people they serve. Key provisions include:

  • Expansion of Paycheck Protection Program (PPP) Loans: The ARPA provides an additional $7.25 billion for the program, and expands eligibility to nonprofits with more than 500 employees that operate at multiple locations as long as no more than 500 employees work at any single location. The bill also allows arts and culture nonprofits to apply for both PPP loans and the Shuttered Venue Operators Grant (SVOG) program (a SVOG grant would have to be reduced by the amount of any PPP loan). The deadline for first or second-draw PPP loans remains March 31, 2021. MNN supports the PPP Extension Act, which is a bipartisan bill in Congress that would extend the PPP loan application deadline through May 31, 2021.
  • Increased federal unemployment insurance (UI) coverage: The law increases federal coverage of unemployment costs for self-insured nonprofits from 50% to 75% from April 1, 2021 to September 6, 2021. Nonprofits in Massachusetts currently have until June 30, 2021 to begin making their UI payments to the Department of Unemployment Assistance. In terms of individual unemployment benefits, the federal law also extends federal benefits for unemployed workers through September 6, 2021.
  • Significant aid to state, local, and Tribal governments: the law provides $350 billion in aid to state and local governments; Massachusetts is poised to receive about $8 billion, which will go to state government, municipalities, and Tribal organizations. Permissible uses of these funds include: “assistance to households, small businesses, and nonprofits, or aid to impacted industries.”
Nonprofits can download a helpful chart compiled by the National Council on Nonprofits that lays out the key nonprofit provisions here. Please contact MNN’s Director of Government Affairs, Danielle Fleury, with any follow up questions or for more information.