What You Need to Know About The CARES Act

The Denver Foundation

Last Friday, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $349 billion stimulus bill to provide small business loans to nonprofits and for-profit organizations.
The Council on Foundations has compiled a summary of CARES Act benefits for small businesses and tax-exempt organizations, as well as links regarding the Paycheck Protection Program (PPP), the Economic Injury Disaster Loans, and other provisions of the CARES Act.
Here is some key information to help you assess what the CARES Act may mean for your nonprofit:
  • Small to Midsized Nonprofits: Nonprofits with 500 employees or fewer that maintain their payroll can receive loans that are forgivable, essentially making this a grant.
  • Larger Nonprofits: Nonprofits having between 500 and 10,000 employees can qualify for a loan through a new Industry Stabilization Fund. These loans cannot be forgiven; however, there are interest rate restrictions.
  • Nonprofits of Any Size: Through the existing Economic Injury Disaster Loans (EIDL) program, nonprofits are eligible for loans at an interest rate of 2.75%.
  • Charitable Giving Incentive: A one-time, above-the-line deduction for charitable contributions of up to $300.
  • Other ProgramsSelf-Funded Nonprofits and Unemployment, Employee Retention Payroll Tax Credit, and Suspension of RMDs.
  • Starting Friday, April 3, lenders will be able to start approving loan applications for the Payroll Protection Act. These loan applications will be funded on a first come, first serve basis until the funds run out. Begin the application here.
Additional Resources:
The Denver Foundation will regularly share information and resources to help you navigate the impact of the COVID-19 crisis — and to continue your important work of serving our community.
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