The American Rescue Plan Act: Stimulus for Nonprofit Organizations
How the American Rescue Plan Act Benefits Nonprofits
The American Rescue Plan Act was signed into law on March 11, 2021, by President Biden. Billions of the funds will aid nonprofits across the country, providing substantial relief. Most of these organizations, serving local communities, were the first to bear the economic and health crisis's brunt. As the pandemic fell unevenly and unfairly on so many businesses in low-income neighborhoods, many nonprofits were the most vulnerable to mass layoffs and closing operations. The new relief and local funding will help nonprofits continue to serve their communities that require the most needs.
How Does the Relief Fund Help Nonprofits?
There will be an expansion to the paycheck protection program (PPP). Select nonprofit organizations with more than 500 employees in multiple locations will now be eligible; however, one location cannot have more than 500 employees. Previous restrictions for the PPP loan prevented crucial relief. Currently, the PPP loan deadline is March 31, but that deadline will not give many nonprofits time to apply. Lawmakers approved the PPP Extension Act of 2021to May 31. If the Senate passes the bill, lawmakers will need to act fast in implementing final approval so that nonprofits can make use of the PPP loan's new expansion.
Americorps will also receive almost $1 billion in funds to support programs responding to the pandemic. $620 million will be available to Americorps' programs providing grants to any nonprofit that puts Americorps members to work on relief projects. The National Service Trust will receive millions of dollars to pay off student loans for alumni members. Anti-poverty programs that Americorps works with will also receive significant financial relief. Under the new stimulus relief fund, there are many benefits for nonprofits often overlooked during an economic crisis. These same nonprofits that face the biggest obstacles created by the pandemic will have a real chance at preventing mass closures that help serve so many communities.