White House, Senate Strike Preliminary Deal on $2 Trillion Coronavirus Stimulus Package
After a tumultuous few days, in the early hours of the morning of Wednesday, March 25, The White House and Senate leaders have reached a preliminary agreement on the coronavirus stimulus package, or officially known as the Coronavirus, Aid, Relief and Economic Security Act.
We are still waiting for the full details of the bill to be released; The Senate expects to pass the legislation some time Wednesday afternoon, but what we know so far is that an estimated $250 billion will be reserved for direct payments to individuals and families, $350 billion for small business loans, $250 billion for unemployment insurance benefits and $500 billion for loans for distressed companies.
Does the CARES Act Include Nonprofits, Too?
While you’re reading this, you’re probably wondering: OK, that’s great, but how does this help nonprofits? According to the current version of the stimulus package, both private and public nonprofit organizations are eligible to receive a portion of the $350 billion reserved for small business loans. However, organizations that have over 500 employees are not eligible for these loans. Additionally, organizations currently receiving Medicaid are also not eligible for these loans.
Additionally, there will be a temporary change to the universal charitable deduction for contributions made in calendar year 2020, which capped at $300 and is open to all taxpayers regardless of their income.
As we previously mentioned, the full details of the bill have yet to be released. We will be closely monitoring the situation and will provide updates as we get them.