The American Rescue Plan expands eligibility for Paycheck Protection Program loans to several types of organizations, including labor unions and agricultural organizations, and adds $7.5 billion in funding for those entities. Qualifying organizations must act quickly as the application deadline is March 31, 2021.
With less than three weeks left to apply for a Paycheck Protection Program (PPP) loan, the American Rescue Plan (Rescue Plan) expands eligibility for first and second draw loans. The expansion includes internet publishing organizations assigned an NAICS code of 519130 and any 501(c) organization except for 501(c)(4) and 501(c)(19) entities, which remain ineligible. Newly eligible nonprofit organizations include labor unions, agricultural organizations, and community locations of larger nonprofits. An applicant must meet the following requirements before applying for a loan:
- the organization does not receive more than 15% of receipts from lobbying activities;
- lobbying activities do not compose more than 15% of its activities;
- the cost of lobbying activities of the organization did not exceed $1 million during the most recent tax year that ended before February 15, 2020; and
- the organization does not employ more than 300 employees at a single location.
Despite the expectation that the current deadline to apply (March 31, 2021) will be extended, newly eligible organizations interested in applying for a loan should begin working with their lender as soon as possible.
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