The American Rescue Plan Act, the new stimulus bill signed into law by President Biden, opens the door for more nonprofit organizations to receive Paycheck Protection Program (PPP) loans.
The Act loosens the rules for 501(c)(3) and 501(c)(6) organizations by allowing their headcount to be calculated “per physical location” for PPP eligibility purposes. Previously, only organizations with fewer than 500 employees total were eligible for the first round of these forgivable loans, while only organizations with fewer than 300 employees total could apply for second-round PPP loans.
Now, first-time PPP borrowers can apply if they have fewer than 500 employees per location, and repeat PPP borrowers can apply for a second-round PPP loan if they have fewer than 300 employees per location.
Time is of the Essence
If your organizations falls into either of these new thresholds, time is of the essence to submit your application. While the deadline set by the SBA is March 31, 2021, some lenders are closing their online application portals earlier.