The recently passed CARES Act, a $2.2 trillion COVID-19 relief bill, provided aid for small businesses and affected industries across the country. However, the bill does not include assistance for 501(c)(6) organizations such as trade associations that are, in some cases, experiencing the same operational challenges that large and small businesses are facing due to the coronavirus pandemic.
While the Paycheck Protection Program, one of the flagship provisions of the CARES Act, has only been available to small businesses around the country for less than a week, Congress has acknowledged the need for additional assistance for the economy.
ABC is supportive of extending PPP loans for small businesses to pay employees and cover expenses for more than eight weeks and is also urging congress to expand PPP loans to include 501(c)(6) organizations in any additional emergency support in the next coronavirus aid package. This change would potentially make ABC National and all 69 ABC chapters eligible for the loan program.
ABC is working with ASAE and nearly 3,000 other organizations to support these efforts and has sent a letter to Congress and the administration urging policymakers to include associations in critically needed aide to help combat financial loss due to COVID-19. The letter specifically calls on Congress to take these actions, among others:
- Include 501(c) organizations, such as 501(c)(6) trade, professional and membership associations, in an additional Small Business Administration loan expansion;
- Provide $25 billion in emergency aid for associations that face major financial loss due to event cancellations as a result of COVID-19; and
- Create a pandemic risk insurance program with a federal backstop for prospective insurance claims related to a pandemic or epidemic.
ABC will continue to inform members about the developments of a subsequent coronavirus aid package in Newsline.