WASHINGTON— ASAE is appreciative of congressional action in the U.S. House of Representatives on May 15 to provide specific relief through the Paycheck Protection Program (PPP) for associations impacted by the COVID-19 pandemic.
The expansion of PPP eligibility to include associations was ASAE’s top ask as House members returned to Washington last week to vote on another round of COVID-19 relief legislation. Under the House-passed HEROES Act, any 501(c) entity would be able to apply for PPP funds. The bill creates a carve out of 25 percent of PPP funds solely for the use of all nonprofits, no matter their size or type, but requires that at least half this amount goes to smaller nonprofit organizations with fewer than 500 employees. The bill also extends the covered period for PPP loans to December 31, 2020, and PPP’s forgivable loans could be stretched over 24 weeks instead of the eight weeks established by the CARES Act. The package calls for improved coordination between the PPP and the Employee Retention Tax Credit (EITC) to ensure borrowers can take advantage of both types of assistance.
House passage of the bill is a significant development for associations in need, and ASAE now calls on the Senate to act expediently to assist America’s associations that were largely left out of previous COVID relief measures. The 1,800-page HEROES Act includes numerous provisions, some of which are opposed by Senate Republicans, but support for 501(c) relief has been bipartisan. While ASAE is appreciative of the House action to expand access to the PPP for associations, it will also be important for Senate and House negotiators to provide additional funding for the PPP in any bipartisan package.
“Associations have been working to help prop up the nation’s essential industries and professions without a financial safety net during the COVID-19 pandemic, and many are struggling to maintain basic operations such as payroll, mortgages and rent,” said ASAE President and CEO Susan Robertson, CAE. “Elements of this package will obviously require reconciliation with the Republican-controlled Senate where there is bipartisan support for assisting the association community during this economic crisis. ASAE urges Congress to act swiftly to resolve differing priorities in the next round of COVID relief legislation and affirm the support associations need to weather this pandemic.”
MEDIA CONTACT: Lauren Precker, CAE, email@example.com, 202-626-2735.
About ASAE: The Center for Association Leadership
ASAE is celebrating 100 years of making society smarter, better and safer. The Centennial anniversary represents ASAE’s role as a leader and supporter of progress and innovation in the association industry. ASAE is a membership organization of more than 48,000 association executives and industry partners representing 7,400 organizations. Since it was established 100 years ago, its members have and continue to lead, manage, and work in or partner with organizations in more than a dozen association management disciplines, from executive management to finance to technology. With the support of the ASAE Research Foundation, a separate nonprofit entity, ASAE is the premier source of learning, knowledge, and future-oriented research for the association and nonprofit profession and provides resources, education, ideas, and advocacy to enhance the power and performance of the association and nonprofit community. Visit ASAE at asaecenter.org.