Following are the eligibility requirements for “additional covered nonprofit entities”:
The additional eligibility opens up the potential for organizations tax-exempt under IRS Section 501c (including labor organizations and health and welfare plans). Unfortunately, organizations under IRS Section 501a, such as pension plans, are not included.
Otherwise, eligibility and loan forgiveness for PPP loans were unchanged. This includes a statement that organizations must affirm during the application process stating that the “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
Particularly for labor organization and benefit plans, there are 2 additional important items to give special consideration as part of assessing eligibility:
Your organization may qualify for up to a $10m loan, calculated as follows:
After all loan proceeds are used, your organization can request forgiveness of the loan if, during the 8- to 24- week period following the loan disbursements:
The Federal Reserve Board announced earlier this week that it will extend the expiration date of the PPP servicing from March 31, 2021 to June 30, 2021. However, it is unclear whether this will also be followed by the Treasury, Congress and/or the SBA. So, do not delay to get your labor organization or benefit plan’s PPP loan application submitted by the March 31, 2021 deadline.