The information provided on this webpage does not, and is not intended to, constitute legal or tax advice. We advise you to contact your own counsel or tax professional before taking any action.
Federal Funding Opportunities
New and expanded federal funding opportunities in the Coronavirus Aid, Relief and Economic Security (CARES) Act and the Paycheck Protection Program and Health Care Enhancement Act.
- The Paycheck Protection Program: provides loans via the Small Business Administration (SBA) of up to 2.5 times the borrower’s average monthly payroll costs, not to exceed $10 million, to cover payroll support, such as employee salaries, paid sick or medical leave, insurance premiums, and mortgage, rent, and utility payments. If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable. While additional funds have been added to this program, it still has a capped amount of funding, so you are encouraged to apply as soon as possible.
- Paycheck Protection Program FAQs
- Eligibility: Nonprofits with fewer than 500 employees. Each employee regardless of status (full-time, part-time, or other) must be counted as one employee, and employees of any “affiliate” are also counted toward the 500 person total. (Generally, affiliation exists when one business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses.)
- Access: APPLICATION WINDOW HAS REOPENED AS OF 4/27. The SBA Administrator has posted application and eligibility information on its website. You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
- Additional information and resources:
- SBA Paycheck Protection Program webpage
- Paycheck Protection Program Loan Forgiveness Application (May 15, 2020)
- Further details about loan requirements, borrowing limits, and forgiveness parameters.
- Senate Small Business and Entrepreneurship Committee: The Small Business Owner’s Guide to the CARES Act
- FEMA Public Assistance Grants: Private nonprofit (PNP) organizations that provide educational, utility, emergency, medical, or custodial care, including for the aged or disabled, and other essential social-type services to the general public, and who are experiencing additional unreimbursed expenses due to having to respond to the Coronavirus pandemic, may be eligible to apply for the FEMA Public Assistance Grant Program. Please see our more detailed summary here.
- Economic Injury Disaster Loans (EIDL): Note that as of April 27, SBA is unable to accept new applications for the EIDL COVID-19 related assistance program, including advances, based on available funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. When and if we learn more and if additional funds are made available, we will update this section.
- Creates emergency grants for eligible nonprofits harmed by COVID-19 enabling them to receive an emergency advance of up to $10,000 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). EIDLs are lower interest loans of up to $2 million, with principal and interest deferment at the discretion of the SBA, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
- Eligibility: The law includes as eligible applicants “private non-profits” with 500 or fewer employees. While it is not clear what definition is being used for that term (which could be used to refer only to foundations), the application form specifically asks if an applicant is a 501(c)(3). However, most likely, organizations cannot participate in both EIDL and the Paycheck Protection Program and will have to choose one or the other.
- Access: To access the advance, you first apply for an EIDL and then request the advance. SBA has created an on-line application form.
- Additional information: Senate Small Business and Entrepreneurship Committee: The Small Business Owner’s Guide to the CARES Act
- Department of Treasury Economic Stabilization Fund/Main Street Business Lending Program: Gives the Treasury the authority to develop a program to provide loans to nonprofit organizations (along with other businesses) through December 31, 2020. Loans made under the program would be at an interest rate no higher than 2%, with no payments due in the first six months, and would not be forgivable.
- Eligibility: Businesses with up to 15,000 employees or up to $5 billion in 2019 annual revenues. Funds must be used to retain at least 90 percent of the recipient’s workforce, with full compensation and benefits, through September 30, 2020.
- As of April 30: The Federal Reserve has published an FAQ indicating that nonprofits are NOT currently eligible (see Question E6) but has stated that they recognize "the critical role that nonprofit organizations play throughout the economy and [are] evaluating a separate approach to meet their unique needs."
- Access: The Treasury and the Federal Reserve have issued initial guidance indicating that banks will be approving and issuing these loans, with the government assuming much of the risk.
- Public Health and Social Services Emergency Fund: $100 billion in CARES plus for a new program to provide grants to hospitals, public entities, nonprofit entities, and Medicare and Medicaid enrolled suppliers and institutional providers that provide diagnoses, testing, or care for individuals with possible or actual cases of COVID–19, to cover unreimbursed health care related expenses or lost revenues attributable to the coronavirus public health emergency.
- Eligibility: "Hospitals and health care providers." While hospitals right now are the main focus of this funding, other providers should be eligible depending on availability of funds.
- Access: HHS has begun awarding some of these funds directly to Medicare providers and hospitals who have been strongly impacted by the coronavirus. HHS has also said that "there are some providers who will receive further, separate funding, including skilled nursing facilities, dentists, and providers that solely take Medicaid," but has not made clear yet how that funding will be distributed or specifically to whom.
- $50 million for Section 202 Housing for the Elderly to make up for reduced resident rent payments as a result of the coronavirus, maintain housing stability, and to help communities pay for costs associated with the coronavirus. Allows up to $10 million to be used for Service Coordinators and the continuation of existing congregate service grants.
- Eligibility: The funds are to be used to prevent, prepare for, and respond to the coronavirus. This includes funds to “maintain normal operations” and take “other necessary actions” and for “assistance to owners or sponsors” of the Section 202 program.
- Access: It is not yet clear how these funds will be distributed. On March 25, HUD’s Office of Multifamily Housing said that that they will put out guidance soon on how these funds will be accessed. For now, HUD officials said they believe HUD-assisted owners may be able to access these funds via the normal voucher process.
- $800 million (of $1 billion total approved in the CARES Act) from the Department of Housing and Urban Development for Project-Based Rental Assistance:
- On June 1, HUD published a funding allocation update.
- HUD will complete $800 million in funding allocations during the week of June 1 to help communities prevent, prepare for, and respond to the coronavirus through regular operations.
- $200 million dollars for Home and Community Based Services (HCBS) under Title III-B of the Older Americans Act via the Administration for Community Living (ACL). The HCBS services are those funded under the Older Americans Act, which can help seniors with personal care assistance; help with household chores and grocery shopping; transportation to essential services (such as grocery stores, banks, or doctors) when necessary; and case management.
- Eligibility: This money is specifically for “support services” and for “existing grantees.”
- Access: Per statutory requirements, those funds were issued from ACL via formula to grantees, the State Units on Aging. The grantees are then required to distribute service funding through their intrastate funding formula to their Area Agencies on Aging to administer the Title III Supportive Services program.
- HHS funding for SNFs via CARES Act's Provider Relief Loan: The Department of Health and Human Services announced the next round of targeted funding via the CARES Act’s $100 billion Provider Relief Fund, with directed funding for SNFs. The money will be distributed automatically to qualified skilled nursing facilities, who will then be required to submit an attestation about how they’re using the money. Each SNF will receive a fixed distribution of $50,000, plus a distribution of $2,500 per bed. All certified SNFs with six or more certified beds are eligible for this targeted distribution. More information is expected to come.
Requirements & Regulations
New requirements or updated regulations stemming from the Coronavirus crisis.
- Families First Coronavirus Response Act: The bill includes a complex set of temporary paid leave mandates and employer reimbursement provisions, as well as funding for free coronavirus testing, food nutrition security, and unemployment insurance enhancements. It also suspends work requirements for the supplemental nutrition assistance program (SNAP).
- New mandates for paid sick leave and paid family and medical leave: new requirements that many employers with fewer than 500 employees provide paid sick leave and paid family and medical leave, under certain conditions related to having COVID-19, caring for someone who does, or caring for a child whose school or childcare provider is closed because of COVID-19. Employers required to provide this paid leave will be reimbursed via refundable tax credits allowed against the employer portion of payroll taxes.
- Analysis of impact of the bill on nonprofits
- Summary of entire bill
- 1135 Waiver Guidance: 1135 waivers can be issued by the Secretary of Health and Human Services in response to an emergency situation like the COVID-19 pandemic and allow certain requirements in Medicaid to be modified or waived to ensure that sufficient health care items and services are available to meet the needs of Medicaid enrollees in affected areas. Our providers should review these flexibilities, determine whether their state has already applied for a waiver, and be sure to work directly with their state Medicaid director and Governor to communicate their needs.
- Approved state waivers: As of March 30, 38 states had had waivers approved according to The Kaiser Family Foundation.
- Blanket Waivers: The Centers for Medicare and Medicaid has expedited the process in the current emergency situation by issuing a blanket waiver of numerous Medicare requirements that all states may implement without individual approval. This list includes a waiver of the 3 day hospital stay requirement to enter a nursing home.
- Template/checklist for additional waivers: HHS has also issued a list of some of the requirements they are allowed to waive under 1135 authority as a template to make it easier for states to request waivers beyond the blanket waiver authority.