Resources for Non-Profits
This page will be updated continuously to reflect the most recent information. This page was last updated on January 6, 2021.
On December 27, 2020, the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (“COVID relief law”) was signed into law – providing additional relief to non-profits, small businesses, and their employees struggling as a result of the COVID-19 pandemic. Updated information on available resources is below.
Update: Congress refreshed this program in the COVID relief law, and new loans will soon be available until March 31, 2021. The Coronavirus Aid, Relief, and Economic Security (CARES) Act created a new Small Business Administration (SBA) loan program, called the “Paycheck Protection Program” (PPP). The Paycheck Protection Program provides small businesses and non-profits with zero-fee loans of up to $10 million to cover payroll and other operating expenses.
Congress extended PPP eligibility to additional types of businesses and non-profits, including small housing cooperatives, 501(c)(6) organizations, and destination marketing organizations. Additionally, the COVID relief law enables businesses and non-profits that have already received a PPP loan to apply for a second forgivable loan of up to $2 million, and new categories of expenses now qualify for forgiveness. Please click the link above for more information.
Update: Congress refreshed the EIDL emergency advance program in the COVID relief law, and emergency grants for eligible small businesses and non-profits will soon be available. The CARES Act expanded eligibility for SBA economic injury disaster loans (EIDLs). EIDLs are loans up to $2 million with interest rates of 3.75% for businesses and 2.75% for nonprofits. The CARES Act also established an EIDL emergency grant program, which allows loan applicants to request an advance of up to $10,000 to keep employees on payroll, pay for sick leave, or otherwise pay business obligations. These emergency advance grants do not need to be repaid.
The EIDL emergency advance program was closed to new applicants over the summer after the SBA ran out of funding. The COVID relief law allocates an additional $20 billion of targeted funding for the emergency advance grants, which will allow SBA to resume the program. However, the law also restricts eligibility to qualified applicants located in low-income communities. For more information on EIDL emergency advances and to see whether your business is eligible to apply, please click the link above.
The COVID relief law provides $15 billion nationwide to a new SBA grant program for live venues impacted by the public health crisis. Eligible grant recipients include live venue operators, promoters or theatrical producers, independent movie theatre operators, museum operators, and talent representatives. Of the total amount, $2 billion is set aside for eligible entities that employ fewer than 50 full-time employees. Grants are awarded by the SBA, which will make application information available as soon as possible. Check back for updates and click the link above for more information on the new program.
Update: In the COVID relief law, Congress extended the reimbursement provision through March 13, 2021. The CARES Act provides payments to states to reduce the amount by which nonprofit entities are required to reimburse states for benefits paid to their workers who claim unemployment insurance by 50 percent through December 31, 2020.
Contact the Department of Labor and Industrial Relations at labor.hawaii.gov/ui/contact for additional information.
Update: The COVID relief bill authorizes employers to continue to provide paid leave and utilize the applicable tax credit through March 31, 2021, if they choose to do so. The Families First Coronavirus Response Act (“Families First”) temporarily required employers, including non-profits, with 500 or fewer employees to provide paid sick, family, and medical leave to employees who are directly affected by the COVID-19 outbreak. Families First also provides for refundable, advanced tax credits to offset the costs of companies covered by the paid leave provisions. The paid leave requirement went into effect on April 1, 2020, and ended on December 31, 2020.
Please refer to this related information for employees about emergency paid leave and information for employers about emergency paid leave.
Update: In the COVID relief law, Congress extended and made enhancements to the employee retention tax credit. The CARES Act created a refundable payroll tax credit for businesses and nonprofits that retain their employees during the COVID-19 crisis. Please click the link above for more information on important updates to the credit included in the COVID relief law, including a larger credit amount and relaxed eligibility criteria. The COVID relief law also permits certain governmental employers to claim the credit, including state- and local-run colleges and universities and entities whose principal function is providing medical or hospital care.
Payroll Tax Delay
Update: The COVID relief law extends the repayment period for deferred payroll taxes through December 31, 2021; penalties and interest on deferred unpaid tax liability will not begin to accrue until January 1, 2022. The CARES Act allowed employers to delay paying the employer-portion of payroll taxes through the end of 2020.
Expansion of Charitable Tax Deduction
Update: The COVID relief law extends the CARES Act charitable deduction expansions through 2021. The CARES Act expanded the charitable tax deduction for individuals by allowing taxpayers who do not itemize to take up to $300 in an above-the-line tax deduction. For taxpayers that itemize, the CARES Act allowed them to increase the limitation on charitable deductions from 60 percent to 100 percent of modified income for cash contributions generally to public charities. It also increased the limitation for food contributions by corporations from 15 percent to 25 percent of modified income.
The COVID relief law includes significant financial assistance specifically for health care providers to respond to the COVID-19 pandemic. More information on that assistance is available here.