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Take Action to Ensure 501(c)(6) Organizations Gain Access to PPP Funds

Over the past several months, JNCL-NCLIS has carefully followed the development of emergency aid bills to ensure the inclusion of sufficient aid provisions for companies and non-profits in need of critical support. Congressional negotiations for the next major COVID-19 relief package will move quickly over the next several weeks. JNCL-NCLIS supports ASAE's advocacy efforts and encourages members to take action via the link below, and contribute to data collection efforts to help shape policy.

Additional Coverage:


A message from ASAE

501(c)(6) Organizations Need PPP Access on Inclusive and Equitable Terms

An updated Senate COVID-19 relief measure would expand eligibility under the Paycheck Protection Program (PPP) to include all 501(c)(6) organizations with 300 or fewer employees. There also exists proposed, vague lobbying restrictions that would be used to further determine eligibility. We are concerned small organizations that typically do not lobby much at all would be inaccurately labeled as lobbying organizations and that the restrictions could exclude most, if not all, organizations that lobby on a modest basis.

If a 501(c)(6) organization employs 300 or fewer people, it would only be eligibility for a PPP loan if:

• “the organization does not receive more than 10 percent of its receipts from lobbying activities;” and/or

• “the lobbying activities of the organization do not comprise more than 10 percent of the total activities of the organization.”

Ten percent is a low threshold for any organization, but, unlike for 501(c)(6) organizations, these proposed restrictions would not apply to businesses and other nonprofits.

WE NEED YOUR HELP to urge as many legislators as possible to ensure 501(c)(6) organizations gain access to PPP funds and that these unfair lobbying restrictions are made more inclusive or eliminated altogether.

Thank you for your steadfast advocacy to help build support for the 501(c)(6) community.

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