American Rescue Plan & Nonprofits - What We Know
The American Rescue Plan (ARP) was signed into law earlier this month. The $1.9 trillion legislation has a number of provisions that impact all nonprofits, and we wanted to share a quick list of some general areas to highlight, plus what you can do to advocate for nonprofits now.
- Added $7+ billion to the PPP Loan Program
- Nonprofits with more than 500 employees can now apply for PPP, provided there are less than 500 employees per site.
- ADOPTED MARCH 25: PPP Loan Applications for a second draw have been extended into May, they had been ending March 31.
- $350 billion for state and local governments.
- SC will get over $4 billion - the State will get $2+ billion, and every city and county will get a piece of $1.8 billion for local governments.
- Funding can be used to provide support for nonprofits.
- Funds will be distributed within 60 days of the act becoming law (March 11).
- We are waiting on guidance from the US Treasury to help guide next steps.
- Look for a deeper breakdown on this component of the ARP in our April Speaking Together newsletter.
What Together SC is Doing
Together SC is working on state-level strategies to support nonprofits, including:
- Monitoring guidance issued by the federal government (expected in April) to understand exactly how governments can spend ARP state/local money and what restrictions may be in place for nonprofits who receive funding.
- Watching the Statehouse to make sure nonprofit voices are heard.
- Ensuring nonprofits are eligible for any statewide support made available.
- Ensuring nonprofits can receive funding from multiple levels of government, or at least have a clear understanding of how nonprofits can maximize their options for support.
- Providing guidance to nonprofits on how to impact local decisions.
What You Can Do Now
Here are some key steps you should take right now to ensure nonprofit voices are heard as local governments, and our legislature, think about how they will use ARP funds:
- Reach Out ASAP: Agencies, Legislators, and Local government officials are already thinking about how they can use these funds. While they are waiting on full guidance, they should hear from nonprofits now so that, when they're ready to put their priorities together, they have already heard from you.
- Team Up: There is strength in numbers, and having your local nonprofit community come together for a common "ask" is a good strategy. Don't forget that, in some cases, teaming up with your business community will also be valuable.
- Advocate for Process Too: It's not just the bottom line that matters. As we have learned throughout all of these COVID relief packages - the secret is in the process, administration, and reporting requirements.
- Offer Your Support: Reach out to your local government and become their "expert" on this topic and help them craft their vision for supporting local nonprofits.