Programs available for relief
Economic Injury Disaster Loan Program (EIDL):
EIDLs are available to a much broader set of nonprofits than those eligible under the PPP. For the EIDL program, eligible "private nonprofit organizations" include any entity exempt under section 501(c), including the trade associations, welfare funds, advocacy organizations, unions, and social clubs that are excluded from the PPP.
However, organizations that are primarily engaged in lobbying or political activities are ineligible to participate in the EIDL program.
The EIDL program also includes certain organizations tax-exempt under 501(d) (apostolic organizations) or 501(e) (cooperative hospital service organizations).
In contrast to the PPP, there are no limitations on the size of nonprofits that are eligible to obtain EIDLs. (Organizations can verify their eligibility for the EIDL program on the SBA website.) This program is a Loan with a $10,000 forgivable grant associated with the loan.
Paycheck Protection Program (PPP):
Organizations that are eligible for the PPP-
In addition to any business that already qualified as a "small business concern" under the SBA's existing loan programs and certain other businesses, eligible nonprofits able to participate in the PPP are 501(c)(3) organizations, (most Union Training Funds are a 501(c)3), 501(c)(19) veterans organizations, and tribal business concerns.
Nonprofit organizations that are not tax-exempt under IRC sections 501(c)(3) or 501(c)(19), such as trade associations, advocacy organizations, unions, and social clubs, are not eligible to participate in the PPP.
This is a forgivable loan (if you meet the qualifications) and the total loan amount is calculated based on your Monthly payroll costs x 2.5
Employee Retention Credit:
Who are "eligible employers" for the Employee Retention Credit?
The credit is available to all employers in the US (including all nonprofit organizations) whose (a) operations were fully or partially suspended due to a COVID-19-related shut-down order, or (b) gross receipts declined by more than 50 percent when compared to the same quarter in 2019.
The Employee Retention Credit is a refundable tax credit for 50% in "qualified wages" (up to a $10,000 cap) paid to each employee by an "eligible employer" whose business has been financially impacted by COVID-19. This means that an eligible employer receives a $5,000 credit for each employee who is paid $10,000 or more in qualified wages paid or incurred from March 13, 2020 through December 31, 2020.
Important Clarification for this credit… Qualified wages for an eligible employer who averages 100 full-time employees or less are any wages paid to employees during the period between March 12, 2020, and January 1, 2021. Thus, for example, wages paid to furloughed workers, as well as salaries paid to employees working from home, are qualified wages.
Delay of Certain Payroll Taxes:
Under the Act, all employers, including all nonprofit organizations, may defer payment of the employer's share of the Social Security tax for which they are otherwise responsible for the period from March 27, 2020 to December 31, 2020.