Durbin Discusses COVID-19 & CARES Act Relief with United Way of Illinois
SPRINGFIELD – U.S. Senator Dick Durbin (D-IL) today discussed the response to the COVID-19 pandemic and financial relief for nonprofits in the Coronavirus Aid, Relief, and Economic Security (CARES) Act with United Way of Illinois and leaders of nonprofit organizations. Durbin spoke about the Paycheck Protection Program (PPP) in the CARES Act that can provide assistance through forgivable, 100 percent guaranteed loans to eligible small businesses and 501(c)(3) nonprofits with less than 500 employees, and how nonprofits can apply for the Small Business Administration’s Economic Injury Disaster Loan (EIDL) Program. Durbin also discussed his efforts to address the alarming racial disparities in COVID-19 mortality and to continue pushing for increased coronavirus testing in this country, including for immigrant communities.
“The CARES Act sought to provide a safety net in people’s health care and finances so that we can weather this unprecedented crisis. Nonprofits in Illinois are doing everything they can to help Illinoisans in this time of need, and we have to ensure they have the financial help to stay afloat as we fight this virus. I’ll be pushing for improvements and increased funding for small businesses and nonprofits in the next legislative package, and I remain concerned about the lack of testing among immigrant communities in Illinois and the serious racial disparities in COVID-19 cases and deaths,” Durbin said.
The CARES Act included $10 billion to provide up to $10,000 in emergency grant assistance to eligible small businesses and nonprofits that apply for the Small Business Administration EIDL program, which offers low interest loans of up to $2 million that can be used for payroll and other operating expenses. Most private nonprofits of any size are eligible to apply for EIDL loans.
The CARES Act also allows non-profits of all sizes to utilize the refundable Employee Retention Tax Credit, a payroll tax credit for 50 percent of wages paid during the crisis. For each employee, up to $10,000 in wages can be counted towards the credit. To qualify, employers must have fully or partially suspended operations due to coronavirus; or have a 50 percent reduction in gross receipts.
Previous Article Next Article