An Update from NAW Government Relations Team - 4.23
As you know, the recently-enacted COVID-19 stimulus bill – the CARES Act – contains several provisions setting up loan programs to help struggling businesses, with a new Paycheck Protection Program to help small businesses with 500 or fewer employees.
Unfortunately, a last-minute edit to the CARES act included new language defining non-profits eligible for PPP loans as 501(c)(3) charitable and 501(c)(19) veterans organizations only, making trade associations as 501(c)(6) organizations ineligible for loans under that program. An aggressive effort is underway to get trade associations included in the PPP program if/when COVID-4 is considered in Congress.
In the interim, however, there is a direct SBA loan program for which trade associations are eligible – the Economic Injury Disaster Loan program (EIDL).
NAW has prepared a new legal advisory on the small business loan programs, including the EIDL program. Click here to view our new advisory.
Jade West, Chief Government Relations Officer
National Association of Wholesaler-Distributors