New Funding Available for CARES Act Loans
On Friday, April 24, 2020, President Trump signed a $484-billion bill designed to boost the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed last month. Our understanding is that there are thousands of pending loan applications currently in the pipeline and that this new funding will go quickly. If you have not yet applied for any of the federal programs, please consider doing so immediately. For more information about the CARES Act and how to apply for relief, please keep reading.
What’s in CARES Act 1.5?
The new legislation – called “CARES 1.5” by some – includes:
- $310 billion in replenished funds for the Paycheck Protection Program (PPP)
- $50 billion for the SBA’s Economic Injury Disaster Loan (EIDL) program
- $10 billion for the SBA’s Emergency Economic Injury Grant program
- $75 billion in emergency money for our health system
- $25 billion to increase testing and contact tracing capabilities
An important new provision:
While $250 billion of the $310 billion will be disbursed the exact same way as in round one, the other $60 billion will be allocated by small lenders and community-based financial institutions with the stated goal of focusing on rural businesses and businesses owned by women and people of color.
How to Apply:
- To apply for the Paycheck Protection Program, reach out to an SBA approved lending institution.
- To apply for the SBA’s Economic Injury loan and grant programs, visit the SBA website.
- Find more details about the differences between the loans on our blog.
Questions? Need More Help?
- Independent Sector has launched a new CARES Act Chatbot to help you quickly and more efficiently answer pressing questions and apply for relief programs.
- Looking for one-on-one support with navigating your options and the application process? MANP has convened a Rapid Response Team of volunteers.
Many are saying that this new funding still won’t be enough and CARES Act 2.0 does still seem to be coming, but likely not until May as Congress is not expected to reconvene until May 4. Among some of the new relief being talked about is an expansion of food stamps, support to the states, support for mail-ballot elections, hazard pay for front line workers, bailout oversight, rent freezes, another round of stimulus checks to individuals and extension of unemployment payments beyond the four-month period provided for in the first CARES Act.
While we are pleased that nonprofits were made eligible for the CARES Act, more must to be done to ensure nonprofits have the resources they need to continue to serve the people in their communities.
Earlier this month, MANP and more than 100 Maine nonprofit organizations and thousands of organizations across the country sent a letter with a list of priorities to our Congressional members, including:
- Strengthen Charitable Giving Incentives
- Treat Self-Funded Nonprofits Fairly
- Increase Emergency Funding
MANP will continue, with support from its Advocacy Network members, to lobby for relief for Maine nonprofit organizations like yours.
For more information on relief for nonprofits, please visit MANP’s COVID-19 webpages.