Consolidated Appropriations Act – 501(c)(6) Organizations Qualify for PPP Funding

With the passing of the of the Consolidated Appropriations Act, 2021 (the Act) on December 27, 2020, organizations exempt under Internal Revenue Code Section 501(c)(6) are now eligible for the original Payroll Protection Program (“PPP”) loan and possible forgiveness. 

In order to obtain this the loan, 501(c)(6) organizations must meet each of the following requirements.

501(c)(6) loan requirements

  • The organization does not receive more than 15% of its receipts from lobbying activities;
  • The lobbying activities of the organization do not comprise more than 15% of the total activities of the organization;
  • The cost of the lobbying activities of the organization did not exceed $1,000,000 during the most recent tax year of the organization that ended prior to February 15, 2020; and
  • The organization does not employ more than 300 employees.

501(c)(6) organizations that are professional sports leagues and organizations with the purpose of promoting or participating in a political campaign are excluded from this opportunity. 

Included in the Act is the opportunity for nonprofit organizations to receive a second round of PPP funding.  501(c)(6) organizations do not meet the definition of an eligible entity for this funding.

If you would like additional information or want to have a discussion regarding your 501(c)(6) organization qualifying for PPP funding, please contact Schneider Downs.

 

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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