COVID-19 Government Relief

On March 11, 2021, President Joe Biden signed into law a massive $1.9 trillion in COVID-19 relief. Here is an overview of key elements of the relief package, many of which build on programs established in 2020:

• Shuttered Venue Operators Grants: An additional $1.25 billion in funding will be made available to support the Small Business Administration’s emerging COVID-19 relief program, also known as Save our Stages, bringing total funding for the program to $16.25 billion. A policy change will allow 2021 Paycheck Protection Program recipients to apply for a Shuttered Venues grant, and then deduct the value of their PPP loan from the applicant’s maximum grant amount. An additional $840 million in funding will build the capacity of SBA to administer relief programs, including Shuttered Venue grants.
• Paycheck Protection Program: An additional $7.25 billion will be added to the PPP resources, and eligibility changes will allow nonprofits with no more than 500 employees at each location to be eligible for forgivable loans.
• National Endowment for the Arts COVID-19 Relief: The NEA will receive an additional $135 million in dedicated funding, with 40% allocated to states and regions and the remainder supporting direct grants to organizations “that support organizations’ programming and general operating expenses to cover up to 100 percent of the costs of the programs which the grants support, to prevent, prepare for, respond to, and recover from the coronavirus.” New dedicated COVID-19 relief funding has also been included for the National Endowment for the Humanities and the Institute of Museum and Library Services.
• Employee Retention Tax Credit: The refundable payroll tax credits that are currently available in the first two quarters of 2021 will be extended through the remainder of the calendar year.
• Families First Paid Leave and Credits: Paid sick and family leave provisions are expanded and refundable payroll tax credits extended through September 30, 2021.
• Pandemic Unemployment Benefits: Pandemic Unemployment benefits, including the $100 supplement for those with a mix of 1099 and W-2 earnings, are extended through September 6, 2021. Pandemic Unemployment Compensation will be available at $300 per week, through September 6, 2021. The first $10,200 of unemployment insurance benefits will be non-taxable in 2021 for households with an adjusted gross income under $150,000.
  
  
• Relief for Nonprofits Self-Insuring Unemployment Benefits: Some nonprofits self-insure unemployment benefits rather than pay state unemployment taxes. The federal government covers 50% of nonprofit liability under the CARES Act, and this relief was extended through March 14, 2021 in the December relief package. This bill continues the 50% coverage through March 31, and then starting April 1 federal relief will cover 75% of nonprofit liability, available through September 6, 2021.

Our NYC based members may find these resources helpful:

• The NYC Mayor's Office of Media and Entertainment (MOME) offers this list of resources for arts organizations and a separate list of resources for freelance workers and artists.
• The NYC Office of the Comptroller has compiled a list of private grants and financial assistance to help small businesses navigate the crisis.
• The NYC Department of Small Business Services (SBS) has opened up applications for the Small Business Continuity Fund which offers businesses with fewer than 100 employees the opportunity to apply for zero interest loans of up to $75,000 to help mitigate losses in profit. They continue to accept applications for the Employee Retention Grant Program, which offers small businesses with fewer than 5 employees, including non-profits, a grant to cover 40% of payroll costs for two months to help retain employees.
• Due to the unprecedented impact of COVID-19 on New York City's workforce, the City of New York has developed a list of resources for those who may be unemployed due to COVID-19 or are seeking additional assistance. In addition, ACCESSNYC is a city-run portal for NYC residents to determine their eligibility for more than 30 economic programs and benefits.
• COVID-19 Resources for Non-Profits and Small Businesses (NJ, NY & CT): Gibson and Dunn created a compilation of Federal and state-specific resources that are available to assist eligible small businesses and non-profit organizations in the New York tri-state area related to the COVID-19 pandemic.
• Speakers for Philanthropy New York's financial series have created webinars and resources that walk organizations through the Paycheck Protection application process.