New Beatty Bill Ensures Nonprofits Can Continue Critical Work During Coronavirus Pandemic
WASHINGTON, D.C.—U.S. Congresswoman Joyce Beatty (OH-03) is introducing legislation this week that would require Treasury Secretary Steven Mnuchin to provide loans and loan guarantees to large nonprofits (500+ employees) through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, and create a mechanism for loan forgiveness similar to the Paycheck Protection Program (PPP). Her bill, the Help Charities Protect Communities Act, would set aside $60 billion from the $454 billion allocated to the Exchange Stabilization Fund for these purposes.
“Large nonprofit organizations like the American Heart Association, American Cancer Society Cancer Action Network, Alzheimer’s Association, YMCA, and many more are critical partners whose work impact and shape the lives of tens of millions of Americans each year,” Beatty said. “While the demand for their time and resources are heightened during this trying time, their revenue and income streams are severely strained—if not completely dried up.” She continued, “Now, more than ever, we need to expand access to federal assistance for nonprofits and ensure that they can continue their important work today, tomorrow, and for years to come.”
“Larger nonprofits like the American Heart Association have been relentless in our response to the COVID-19 Pandemic, providing help to millions who are in need. Even in the face of financial challenges, we have remained committed to quality care and research on behalf of the patients and families we serve,” said Nancy Brown, CEO of the American Heart Association. “The Help Charities Protect Communities Act would provide vital financial relief for the charitable sector and the 12 million passionate individuals we employ nationwide. We are deeply grateful to Representative Beatty for her tireless advocacy and urge swift passage of this essential legislation.”
Under the CARES Act, Congress specifically made large nonprofits eligible for the mid-size lending program for loans and loan guarantees for businesses with between 500-10,000 employees. Moreover, the Federal Reserve established the Main Street Lending Program to provide short-term, low-interest loans to mid-size businesses with between 500-10,000 employees. Yet, despite congressional intent, this lending facility explicitly states that nonprofits are ineligible for loans and loan guarantees under this program, leaving large nonprofits with more than 500 employees no avenue to receive financial assistance.
The Help Charities Protect Communities Act is backed by more than two dozen national nonprofits organizations, including: American Heart Association, Alliance for Strong Families and Communities, Alzheimer's Association, American Alliance of Museums, American Cancer Society Cancer Action Network, American Lung Association, Association of Art Museum Directors, Association of Zoos and Aquariums, Ducks Unlimited, Girl Scouts of America, Goodwill Industries International, Inc., Habitat for Humanity, the Independent Sector, Jewish Federations of North America, League of American Orchestras, Leukemia Lymphoma Society, Lutheran Services of America, March of Dimes, Muscular Dystrophy Association, National Health Council, National Multiple Sclerosis Association, San Diego Zoo Global, World Wildlife Fund, YMCA, and YWCA USA.
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