VSA will continue to research and share updates on the ARPA as more info becomes available. Several items to note as of now, 1) The deadline to apply for the PPP loan has NOT been extended beyond March 31st, 2) Be aware of the new extension of COBRA coverage (see below), 3) the new Charitable Incentive bill.
- Analysis of Key Provisions Affecting Nonprofits and the People They Serve – National Council of Nonprofits
- Download the American Rescue Plan info Chart (PDF)
- The American Rescue Plan Act’s Effect on FFCRA and COBRA
- Nonprofits and the American Rescue Plan Act – Candid
Paycheck Protection Program
Adds $7.25 billion for the Paycheck Protection ProgramExpands PPP eligibility to charitable nonprofits that operate at multiple locations and employ not more than 500 employees per physical locationExpands PPP eligibility to other types of nonprofits, but with a 300-emplyee limit per locationNo changes to Second Draw PPP loans eligibility. PPP application deadline is Mar. 31, 2021 unless extended by Congress(Section 5001)
Economic Injury Disaster Loan (EIDL)
Includes $15 billion for the Targeted EIDL Advance program instructs SBA to spend $10 billion in payments to covered entities that did not receive full amounts to which they were entitledAllocates remaining $5 billion to covered entities that have suffered an economic loss of at least 50% and have 10 or fewer employees(Section 5002)
Employee Retention Tax Credit (ERTC)
Extends the Employee Retention Tax Credit through Dec. 31, 2021(Section 9651)Paid Leave Tax Credits for EmployersExtends through Sept. 30, 2021 the refundable payroll tax credits for paid sick and family leave originally established in theFamilies First Coronavirus Response Act and voluntarily provided by employersIncreases the amount of wages for which an employer may claim the paid family credit in a year from $10,000 to $12,000 per employeeExpands leave to cover obtaining vaccinations and any resulting injury or illness related to vaccination(Section 9641)
Charitable Giving Incentives
The new law does not expand incentives for charitable giving, but on Tuesday, March 9, Senators and Representatives introduced the Universal Giving Pandemic Response and Recovery Act, 618 and H.R 1704. If enacted, the legislation would allow taxpayers who claim the standard deduction, rather than itemizing deductions, on their tax returns to take a deduction for charitable giving valued at up to one-third of the standard deduction (around $4,000 for an individual filer and $8,000 for married joint filers). This added giving incentive would be available for tax years 2021 and 2022. Read the full article from Candid