Before we jump into 2021, let's take a look at where we left off in 2020. Below is a brief report on several policy issues from 2020 that impact the nonprofit sector:

The SBA announced late last week that the Paycheck Protection Program will re-open today, January 11, 2021. Here is what you need to know:

Below is the first guidance we've received on the new PPP. We will work to provide any further information as it becomes available.

The United States Small Business Administration, in consultation with the Treasury Department, has recently released additional PPP guidance:

• SBA Guidance on Accessing Capital for Minority, Underserved, Veteran and Woman-Owned Business Concerns (Released 1/6/2021)
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act (Released 1/6/2021)
• Interim Final Rule on Second Draw Loans (Released 1/6/2021)

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES

New COVID-19 Health Order to be Voted on Friday, Dec. 4th @ 5:15pm MT
Central District Health will vote on the proposed order (see below) today, Dec. 4th at 5:15 pm MT. To watch, please follow this link: Live via Youtube.

Late this afternoon Governor Little announced the rollback of our Rebound Idaho plan to Stage 3 statewide to combat rapidly rising infections of COVID-19. Here’s what you need to know about that mandate from the Governor’s office:

Self-response and field data collection operations for the 2020 Census will conclude on Thursday, October 15, 2020.

The Idaho Nonprofit Center wanted to conduct a short pulse pull to see where you stand on mask wearing. Please take just 30 seconds (at most) to complete this 2 question poll. We appreciate your time and dedication to Idaho! ​

Provide full unemployment benefit reimbursement to nonprofits that self-insure these benefits.

Federal and state unemployment laws give nonprofits and governments the option of operating as self-insured (“reimbursing”) employers. This means that they reimburse their state unemployment insurance systems for benefits the state paid to the organization's laid off or furloughed employees.

Shutdown orders by government officials, program cancellations, and reduced revenue streams have forced many nonprofits to furlough or layoff staff, triggering unemployment payment bills that are due this month in most states. These challenges are adding to cash flow difficulties at a time when funds are needed to deliver on missions, but when other employers will likely experience little or no additional costs resulting from COVID-19-related layoffs.

Congress should increase the federal unemployment insurance reimbursement for self-insured (reimbursing) nonprofits to 100% of costs.

If you live in the Central District Health Region be advised that residents of Ada County are now required to wear face coverings in indoor and outdoor public places effective immediately. For more information and specifics on the new ordinance, please visit the Central District Health website for more details.

• Click here to preview the initial draft order.
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Many Idaho cities outside of Ada County (McCall, Moscow, Ketchum, Hailey, and Driggs) saw ordinances go into effect requiring masks as well. Each has both similarities and nuanced differences. We strongly suggest you review your cities website to understand the requirements in your community.  

We issued some guidance last week specific to cities with the ordinances in place, and in the coming weeks we anticipate more cities and/or counties following suit. Here’s a quick round up of information and guidance that you, our nonprofit friends, can use.

Hello Friends! When I began at the Idaho Nonprofit Center 4 ½ years ago, I had no idea what to expect, as I was new to the role, new to the nonprofit sector and even new to Boise. I was super excited to become involved with members, sponsors, and funders. But what I really wanted to do was to make friends with them all.

Payroll Protection Program (PPP) Flexibility Act was signed into law last week. 

Highlights include:

• Extending the expense forgiveness period from eight weeks to twenty-four weeks
• Reducing the 75 percent payroll ratio requirement
• Eliminating 2-year loan repayment restrictions for future borrowers
• Allowing payroll tax deferment for PPP recipients
• Extending the June 30 rehiring deadline
  

We received the following information from the SBA this morning and will share their rules and guidance with you as soon as we can.

SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP. These modifications will implement the following important changes:

• Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
  
  
• Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
  
  
• Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
  
  
• Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
  
  
• Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
  
  
• Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
  
  

In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved.

Many nonprofits had reported difficulty in getting employees back to work after being laid off due to the additional $600 unemployment benefit that the CARES Act provided. We have been sharing this information with our state leadership and are pleased to share this news from last week. Nonprofits and small businesses both had the same challenge and our state is working to address it:

Recently, Governor Brad Little announced his plan to offer up to $1,500 cash to Idahoans who return to work.

More than 60-percent of Americans who are out of work due to the coronavirus pandemic earn more with the enhanced unemployment benefits than their normal wages. The enhanced benefits are set to expire next month, making it even more important to get Idahoans back to work.

“A strong economic rebound cannot occur without workers returning to a job, and the new Return to Work cash bonuses incentivize our workforce to get back to work safely. Like other states, Idaho went from record employment to record unemployment levels in a matter of weeks. Our hearts go out to those who lost jobs or income due to the global pandemic,” Governor Little said.

The executive committee of the Idaho Workforce Development Council will discuss the plan next week. Under Governor Little’s plan, up to $100 million in federal relief funds will be made available to Idaho workers who are eligible for unemployment benefits during the coronavirus pandemic.

Governor Little’s plan includes one-time cash bonuses of $1,500 for full-time work and $750 for part-time work and will be provided to the worker after return to the workplace.

The funds will be available on a first-come, first-served basis for qualified applicants.

Governor Little will work with the Idaho Workforce Development Council and his Coronavirus Financial Advisory Committee to finalize the plan and eligibility requirements. More information on eligibility and how to apply for a Return to Work cash bonus are expected to be available by June 15 at Rebound.Idaho.Gov.

Idaho was one of the last states with a confirmed coronavirus case and one of the first with a concrete plan in place to open the economy responsibly and safely in stages. Ninety percent of businesses were able to open their doors on May 1, and today nearly all businesses are able to open.

NOTE: Cash bonuses are available to anyone who filed a UI claim since March 1 – even those who have already returned to a job since then. It is first come first served.

The Senate passed a nearly $5 billion relief package on April 21, 2020. We anticipate a vote on the bill as early as Thursday, April 23, but will keep you informed as things may change.

Last night we sent letters of support to Congressmen Simpson and Fulcher to encourage swift passage of the legislation. More than 225 nonprofits and community members signed onto our letters. Thank you! We are the voice of the sector, but our voice is louder when we take action together.

The U.S. Senate has passed the $484 billion virus relief bill today. The U.S. House of Representatives is expected to vote as early as tomorrow. We are closing our sign on letter at 5 pm MT today and will send it to Congressman Fulcher and Congressman Simpson as soon as possible.

The package includes: 

• More than $320 billion designated for the Payroll Protection Program (PPP) that was fully depleted last week. 
• $60 billion for Emergency Injury Disaster Loans (EIDL) and grants. 
• $25 billion is approved to support COVID-19 testing needs. 
• $75 billion for hospitals.
  

As a part of our mission to educate, advocate and collaborate in support of stronger nonprofits, the Idaho Nonprofit Center will be sending letters to Senator Mike Crapo, Senator Jim Risch, Congressman Russ Fulcher and Congressman Mike Simpson with the following information.  

We are collecting support for and from Idaho’s nonprofits on the following topics for the phase four COVID relief bill that will be discussed starting this week:

1. Expand access to credit (increase eligibility and support a dedicated funding stream for EIDL & PPP programs)
2. Bolster charitable giving incentives (increasing the $300 cap and extending it beyond 2020)
3. Protecting self-insured nonprofits (providing funding to cover 100% of the cost of these organization’s unemployment claims)
4. Support nonprofit service providers (increasing emergency funding to all levels of our state)

If you would like to add your name, organization, and location to the letter please read through this letter and enter the information requested at the end. We will close the form on Wednesday, April 22 at 5 pm MT and send the letter by the end of the day.

We also encourage you to share this opportunity with fellow nonprofits in your community to ensure they have an opportunity to join in signing onto our letter.  

The Idaho Nonprofit Center serves as the voice for the sector, but your voice can be added to ours helping us to amplify our message. Nonprofits can and should use this opportunity to advocate on your own behalf.

We are stronger together.

As Congress works on additional relief for individuals, businesses, and nonprofits affected by the COVID-19 crisis, we are asking for four specific improvements to the nonprofit relief in the CARES Act:

1. Expand access to credit. Helping nonprofits get more immediate assistance by expanding nonprofit eligibility for the Paycheck Protection Program (PPP) and by establishing a dedicated funding stream for PPP loans to nonprofit organizations. Many in the nonprofit sector were either unable to get their application processed or banks told them that their application was not processed in time. 

As you have probably already heard, the SBA is no longer accepting new applications for the Payroll Protection Program based on available funding at this time.  Additionally, the Economic Injury Disaster Loan (EIDL) and $10K advance program is also unable to accept new applications.
 
The SBA has assured us that they will process previously submitted applications on a first-come first served basis.  We do not have a lot of information at this time, but will share what we know and what you can do.

As Congress works on additional relief for individuals, businesses, and nonprofits affected by the COVID-19 crisis, we are asking for four specific improvements to the nonprofit relief in the CARES Act:

Expand access to credit. Helping nonprofits get more immediate assistance by expanding nonprofit eligibility for the Paycheck Protection Program (PPP) and by establishing a dedicated funding stream for PPP loans to nonprofit organizations. Many in the nonprofit sector were either unable to get their application processed or banks told them that their application was not processed in time. 

Bolster charitable giving incentives. Strengthening temporary above-the-line charitable deduction from the CARES Act by allowing taxpayers to use it on the 2019 taxes, significantly increasing the $300 cap, and extending it beyond 2020. As nonprofits will rely even more on charitable giving from the public, it is essential that Congress creates a universal charitable deduction.