As COVID-19 cases continue to surge across the country, negotiations among congressional leaders continue. The $908 billion bipartisan stimulus relief package introduced on December 2 and rejected by Senator McConnell that same afternoon, appears to be heading in a more positive direction as more GOP senators are expressing support. Unlike previous relief packages, 501(c)(6) organizations were included in the proposal to expand eligibility under Paycheck Protection Program (PPP). Of the $908 billion proposal, $288 billion of that was earmarked for small business aid, including PPP.
501(c)(6) organizations were included in the HEROES Act (HR 6800) passed by the U.S. House of Representatives earlier this summer, which would expand eligibility under the PPP to all 501(c) (6) organizations of any size. The U.S. Senate recently proposed a bill stating 501(c)(6) organizations shall be eligible to receive a covered loan if – the organization does not receive more than 10 percent of its receipts form lobbying activities; the lobbying activities of the organization do not comprise more than 10 percent of the total activities of the organization; and the organization employs not more than 300 employees. Both bills stalled.
Small businesses are the backbone of our economy, and the PPP has been instrumental in helping them keep their doors open. Chambers of Commerce understand the needs of small businesses and are often the first call a business owner makes when seeking resources to sustain and grow their business. However, Chambers of Commerce were also greatly affected by the pandemic and need financial relief. It is critically important that Chambers of Commerce be eligible for PPP funds. Such relief will allow us to continue our work supporting businesses at a time when they need it most and through recovery.
As negotiations continue, we are urging Congress to extend the PPP to trade and professional 501(c)(6) organizations that offer critical services to businesses and workers in communities of all sizes, as we have been left out of previous emergency funding initiatives.
This bipartisan effort indicates there is a small window to enact a relief package before the end of the year. If you are inclined, we encourage you to take a moment to weigh in with your Congressional delegation.
For more information, please contact Stephanie Reyes, VP of Public Policy at sreyes@sachamber.org or by phone at 210-229-2162.
