CARES Act Overview for Nonprofits

On March 25, 2020, the United States Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act – legislation that would provide an unprecedented and massive array of relief, benefit, and stimulus measures designed to help Americans, businesses, nonprofits, and state and local governments amid the coronavirus crisis.

The CARES Act as passed by the Senate is pending approval by the House and President, both of which are expected.

In this webinar, CPA Mike Batts, managing partner of Batts Morrison Wales & Lee, describes key provisions in the CARES Act that are relevant for nonprofit organizations.

Please see below for a supplemental webinar addressing a number of the questions related to the topics covered in the CARES Act Overview for Nonprofits Webinar.

In this webinar, Mike Batts addresses the following questions:

  1. Are there other significant relief options for nonprofits, separate from the Paycheck Protection Loans and should we consider them?
  2. Is clergy compensation includible in “payroll costs” for purposes of determining the maximum loan amount?
  3. What about clergy housing allowance?
  4. What about employer HSA contributions?
  5. What about employer matching contributions to the 403(b) plan?
  6. What about 1099 payments to individual independent contractors (e.g., snow removal, handyman, etc.)?
  7. For organizations with employees whose annual salaries exceed $100,000, do we exclude from the calculation just the excess over $100K or must we exclude that person from the calculation entirely?
  8. How do you measure the $100,000 threshold?
  9. Is there a cap on the total amount of loans and forgiveness under the Paycheck Protection Loan program?
  10. Do you apply for a Paycheck Protection Program Loan directly with the SBA or through a local bank?
  11. What will be the process for applying for loan forgiveness?
  12. Will our organization need to prove that it is unable to repay the loan in order to qualify for forgiveness?
  13. If our church or religious organization accepts a Paycheck Protection Loan, will that affect our religious freedoms?
  14. We refinanced our mortgage after 2/15/20. Since it was a refinancing and not a completely new loan, will that debt be considered as having been incurred prior to 2/15/20?

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