cares act benefits for nonprofit caas
introduction cares act ppp eidl midsize payroll tax relief considerations for caas

CARES Act Benefits for Nonprofit CAAs

The Coronavirus Aid, Relief and Economic Security Act (the CARES Act), which was signed into law on March 27, 2020, offers various forms of aid to nonprofit Community Action Agencies (CAAs) and state associations whose operations have been impacted by the COVID-19 outbreak:

  1. Paycheck Protection Program (PPP) loans, available only to 501(c)(3) tax-exempt organizations with fewer than 500 employees and fully forgivable if spent for qualifying purposes, including payroll costs, mortgage interest, rent, and utilities; and

  2. Economic Injury Disaster Loans (EIDL), available to all tax-exempt organizations with fewer than 500 employees to cover payroll costs, rent, and mortgage, and which are not forgivable, but applicants may receive an advance of up to $10,000 that does not have to be repaid;

  3. Mid-Size Business Loans, available to tax-exempt organizations with between 500 and 10,000 employees, to cover payroll costs; and

  4. An Employee Retention Tax Credit and a deferral of 2020 payroll taxes for certain tax-exempt employers.

 

 

This resource is part of the Community Services Block Grant (CSBG) Legal Training and Technical Assistance (T/TA) Center. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Grant Award Number 90ET0467-03. Any opinion, findings, conclusions, or recommendations expressed in these materials are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.