COVID-19 Government Relief
Quick Links: Paid Leave Provisions | Paycheck Protection Program Loans | Employee Retention Credits | Industry Stabilization Fund Loans | Pandemic Unemployment Assistance | Relief for Nonprofits that Self-Insure Unemployment Benefits | New Charitable Giving Incentives | Dedicated NEA Funding for COVID-19 Relief | SBA's Economic Injury Disaster Loan Program | New York Specific Resources | Additional Resources | APAP Relief Questionnaire
APAP continues to work alongside our national partners to advocate for legislation that supports performing arts organizations, artists and arts workers. The information on this page has been collected from a number of resources and is updated regularly.
If you would like to share other government information resources with APAP, please email firstname.lastname@example.org. We especially welcome resources that aggregate information.
Our collective advocacy efforts as a field are working. Your stories are being heard. We thank you for your efforts and urge you to continue to reach out to your Congressional representatives.
Below is the latest information on federal relief.
- Please be advised that regulations and guidelines are being implemented as laws are being passed and that applying for one program may make you ineligible for another.
- We include a number of links to the agencies themselves that are administering the relief programs and encourage you to refer to their websites for more information.
- APAP has been advised that due to the large quantities of requests coming to federal agencies that you begin your application processes as soon as possible.
- We also encourage you to research additional relief resources in your state and region.
- Need guidance on small business relief, including applying for SBA loans? This is a helpful article.
We also want to thank our colleagues at the League of American Orchestras for their contribution to assembling much of this information on behalf of the performing arts field.
The Families First Coronavirus Response Act
Families First Coronavirus Response Act, signed into law on March 18, contains paid leave provisions relevant to arts organizations, artists and arts workers, including paid leave mandates for employees, relief for employers (including nonprofit employers) that provide the paid leave, and comparable leave provisions for self-employed workers.
Beginning April 1, new COVID-19 related paid leave requirements will be in effect. The U.S. Department of Labor has created a 59-question FAQ for employers, posters describing employee rights under the new law, and a bulletin announcing limited enforcement through April 17, as employers learn how to come into compliance.
Mandated Paid Leave for Employees: Employers with up to 500 employees will be required to provide expanded sick leave and family medical leave for specific reasons related to COVID-19, including federal, state, and local government quarantines or isolation orders and caring for a child whose school has closed, and more. The FFCRA's paid leave provisions are effective on April 1, 2020, and apply to leave taken between April 1, 2020, and December 31, 2020.
Relief for Employers: Those employers required to provide emergency paid leave are eligible to recover the costs of employee leave and health insurance through a refundable payroll tax credit for which nonprofits are eligible. Employers with fewer than 50 employees may be eligible for an exemption from paid leave requirements if providing the paid leave threatens the viability of the organization. The U.S. Department of the Treasury is currently writing further guidelines for implementation. In the meantime, the agency provides an overview of employer relief provisions.
Paid Leave for Self-employed Workers: The law provides for equivalent emergency paid sick leave and family medical leave for self-employed workers through an individual refundable tax credit. The U.S. Department of Treasury is currently writing guidelines for how self-employed individuals may claim the credit.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act
The $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. We have highlighted below key components of the bill that arts organizations, arts workers and artists can access, including relief for non-profit organizations, small businesses, independent contractors and self-employed individuals. You can read the full text of the bill and the Senate's section-by-section summary.
The National Council of Nonprofits has also published a helpful guide of what's in the bill for nonprofits.
Paycheck Protection Program loans, backed by the Small Business Administration, and forgiven by the federal government, is one of the many relief options available through the SBA: Organizations, including 501(c)(3) nonprofits, and self-employed individuals will have access to forgivable loans, through a streamlined application process intended to provide rapid relief that will keep workers on the payroll and help self-employed workers.
UPDATE: On April 24, a supplementary bill was signed into law to recapitalize the SBA's Paycheck Protection Program, providing for an additional $310 billion for small business relief. $60 billion of these new funds will be reserved for smaller lending institutions, such as credit unions, community banks, Community Development Financial Institutions and Minority Depository Institutions. The SBA will resume accepting PPP loan applications on Monday, April 27 at 10:30 a.m. EDT from approved lenders on behalf of any eligible borrower. The SBA is encouraging all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously. All eligible borrowers who need these funds should work with an approved lender to apply.
Loans will be provided by local lending institutions that are authorized by the Small Business Administration (SBA). Talk to a lender who already knows you. They need to be approved to do 7a loans in order to process this loan. Here is a list of the top most active 100 SBA lenders or you can find an eligible lender here. Eligible organizations are subject to a size cap of up to 500 employees (counting individuals employed on a full-time, part-time, or other basis). The maximum loan amount is $10 million.
Loans may cover expenses incurred beginning February 15, 2020 and ending on June 30, 2020. Loan payments will be deferred for at least six months and up to one year, and the term of the loans will be up to ten years, at no more than 4% interest. Eligible uses of the loans include payroll costs (including salary, wages, compensation, leave, severance, health care benefits, insurance premiums, retirement benefits, and state and local taxes), rent, utilities, and mortgage interest payments.
Applicants may apply to their lender for loan forgiveness. The Senate summary states that a, "borrower shall be eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan." The portion of the loan that can be forgiven will be reduced by an amount related to positions that have been eliminated and wages that have been reduced, unless those positions and wages are restored by June 30, 2020.
Local lenders backed by the SBA are processing loan applications from employers with fewer than 500 employees, as well as applications from self-employed workers. These aim to support eight weeks of eligible costs through loan forgiveness. The U.S. Department of the Treasury has posted an overview for borrowers, an overview for lenders, and an example of the loan application form. Of particular concern to some organizations has been the question of how the 500 employee limit will be calculated. The U.S. Department of the Treasury confirmed that it will use the following SBA method of calculation.
UPDATE: As of May 4, the Treasury has issued new rules for seasonal employers that allow applicants to determine their maximum loan amount by calculating average monthly payroll over the period of March 1 to June 30, 2019 (as announced in the orginal guidelines) OR May 1 to September 15, 2019 (a new time frame, for those with more staff in summer months). Interim guidelines for self-employed applicants are also now available, which is important for artists who were previously shut out.
Have a question about the Paycheck Protection Program not addressed here? You may find the answer in these FAQs from the Department of the Treasury. Please check back as this is updated regularly.
Employee retention credits may be available to employers that do not make use of the forgivable SBA Paycheck Protection loans. Employers may be eligible for a quarterly refundable payroll tax credit for 50% of wages paid by employers to employees during the COVID-19 crisis, applied to the first $10,000 in compensation per employee (resulting in a credit of up to $5,000). The extent of the credit and eligibility requirements vary depending on whether the employer has more or less than 100 employees. View the FAQs from the IRS.
Industry Stabilization fund loans (sometimes referred to as Mid-Sized or Main Street loans) may be available to nonprofits with 500 or more employees that commit to restoring 90% or more of their workforce within four months of the end of the national public health emergency. Additional requirements will apply to future workforce conditions--some of them related to collective bargaining agreements--and will merit careful consideration. Loans will be available at an interest rate of 2% or less, and payments would not be required for the first six months.
UPDATE: As of May 4, The Federal Reserve is in the process of broadening the eligibility requirements that will allow nonprofit organizations and a wider array of businesses to apply. Currently, these loans are not forgivable, but have highly favorable terms.
Pandemic unemployment assistance for workers, including self-employed individuals: Unemployment benefits will be expanded to provide an additional $600 per week above the amount allowed under state unemployment benefits, for four months. New relief will be available for workers not eligible for state unemployment benefits, including self-employed individuals who are unable to work due to a number of COVID-related reasons, including "the individual's place of employment is closed as a direct result of the COVID-19 public health emergency." Many artists and arts workers who otherwise do not have access to state unemployment benefits may find relief through this provision. Covered dates of unemployment are from January 27, 2020 through December 31, 2020. Details will be worked out in guidelines from the U.S. Department of Labor, and this relief will be administered by states. The Future of Music Coalition has assembled this Google doc for independent contractors and self-employed individuals with state-by-state information on implementation of unemployment benefits.
UPDATE: As of May 4, while many states have officially opened the application process for unemployment benefits available to self-employed workers, including artists and arts workers, access to those benefits is challenged by overwhelming demands on state systems. Meanwhile, guidelines issued to states by the U.S. Department of Labor are further restricting access to relief meant to be provided under the CARES Act, as some artists who typically earn a mixture of 1099 and W-2 income report being locked out of opportunities for Pandemic Unemployment Benefits. While APAP and its advocacy partners continue to work toward a solution, we recommend that anyone encountering this roadblock stay in contact with their State Departments of Labor for further details.
Relief for nonprofits that self-insure unemployment benefits: Some organizations are among nonprofits that self-insure unemployment benefits rather than pay state unemployment taxes. The federal government will make payments to states to reimburse nonprofits for half of the costs they incur through December 31, 2020 to pay unemployment benefits.
New charitable giving incentives: Building on years of advocacy in partnership with the broader arts and nonprofit sector, a new universal charitable deduction is available, allowing the growing number of taxpayers who do not itemize their returns to receive a tax deduction of up to $300 for cash charitable donations to 501(c)(3) nonprofit organizations during calendar year 2020. For taxpayers that itemize returns, the limit on the total percentage of Adjusted Gross Income (AGI) eligible for the charitable deduction has been lifted. The limit on corporate contributions has been lifted to 25%.
UPDATE: As of May 4, 2020, The CARES act created a new giving incentive for taxpayers that do not itemize their tax returns and it also removed the 60% Adjusted Gross Income (AGI) restriction on charitable deductions for those that do itemize their tax returns for the 2020 tax year. While the Internal Revenue Service has not yet issued guidance, the Congressional Joint Committee on Taxation issued a report on CARES Act provisions on April 23, specifying that the new non-itemizer deduction's $300 cap applies to each "tax filing unit," which means the limitation applies per tax return, regardless whether filed individually, or jointly by a couple. This gives even more urgency to the request made by arts organizations and our colleagues in the broader nonprofit sector to lift the $300 cap and apply this important giving incentive to both 2019 and 2020 returns. More than 140 members of the U.S. House of Representatives signed a letter to House leadership the week of April 27 in support of this and other provisions that will increase the capacity of the nonprofit sector to serve communities.
Dedicated NEA funding for COVID-19 relief. The National Endowment for the Arts will receive $75 million. The agency is authorized to make grants to support general operating expenses, and matching requirements may be waived for grants. Outside of the provisions of the CARES Act, the NEA is also making accommodations for current grantees.
UPDATE: On April 8, 2020, the NEA announced its guidelines to swiftly distribute funding to nonprofit arts organizations. Forty percent of the funds are awarded directly to state and regional arts agencies to distribute through their funding programs. (You can find a list of agencies here.) Sixty percent of the funds are designated for direct grants to nonprofit arts organizations all across the United States and will be announced by June 30, 2020. All applicants must be previous NEA award recipients from the past four years.
The SBA's Economic Injury Disaster Loan Program has received additional funding to provide rapid disaster relief loans related to COVID-19. The CARES Act adds an expectation of three-day processing of loan applications for up to $10,000 in emergency funds. The Small Business Administration has advised that all states are in the process of being granted eligibility, and that all interested loan applicants should begin an application now.
UPDATE: On March 30, the Small Business Administration (SBA) launched a new streamlined application platform for organizations and self-employed individuals applying for emergency loans directly from the SBA, including $10,000 advance payments that will be forgiven by the federal government.
UPDATE: On April 24, a supplementary bill was signed into law, providing an additional $50 billion for the SBA’s Economic Injury Disaster Loan program and another $10 billion for the SBA's EIDL grants program, which can provide small businesses with a quick infusion of capital worth up to $10,000 each. Please be advised that the SBA may be awaiting the disbursement of funds, if its website indicates it's not accepting applications due to a "lapse in appropriations".
The NYC Office of the Comptroller has compiled a list of private grants and financial assistance to help small businesses navigate the crisis.
The NYC Department of Small Business Services (SBS) has opened up applications for the Small Business Continuity Fund which offers businesses with fewer than 100 employees the opportunity to apply for zero interest loans of up to $75,000 to help mitigate losses in profit. They continue to accept applications for the Employee Retention Grant Program, which offers small businesses with fewer than 5 employees, including non-profits, a grant to cover 40% of payroll costs for two months to help retain employees.
Due to the unprecedented impact of COVID-19 on New York City's workforce, the City of New York has developed a list of resources for those who may be unemployed due to COVID-19 or are seeking additional assistance. In addition, ACCESSNYC is a city-run portal for NYC residents to determine their eligibility for more than 30 economic programs and benefits.
COVID-19 Resources for Non-Profits and Small Businesses (NJ, NY & CT): Gibson and Dunn created a compilation of Federal and state-specific resources that are available to assist eligible small businesses and non-profit organizations in the New York tri-state area related to the COVID-19 pandemic.
Speakers for Philanthropy New York's financial series have created webinars and resources that walk organizations through the Paycheck Protection application process.
- Music Covid Relief a resource brought to you by partners in the U.S. Music Community to help music professionals access information and applications to receive benefits made available by the CARES Act (Phase III of the Coronavirus Stimulus bill signed into law March 27, 2020).
Have you had success in getting government relief? Or have you encountered challenges accessing it? Let us know through this simple questionnaire. APAP is working with our advocacy partners to gather questions that will inform future asks to Congress.
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