Week 11 - US Senate CARES About Non-Profits
Many businesses have had to cease standard operations amidst the coronavirus pandemic. The ban on gatherings of more than ten people has rendered some services inoperable. Large swaths of the economy were frozen with the sharp decrease in cash flow. Despite the need to halt labor in the interest of public safety, the laborers are still dependent on the money they usually receive. The masses began to clamor for solutions, and the government had to respond quickly in order to prevent a modern reprise of the French Revolution.
Thus came the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion stimulus package passed unanimously by the United States Senate. Of this, approximately $350 billion is allocated to the Small Business Administration (SBA) to help companies with fewer than 500 employees. This way employees can stay on the payroll, and more importantly, can continue to pay their bills.
The novel thing about this portion of the CARES package is that the SBA has been given jurisdiction over the nonprofit sector as well as the small for-profits it typically manages. Nonprofits are highly reliant on government aid under normal circumstances, but especially so as of late with COVID draining their resources. What's more, many nonprofits typically offer humanitarian aid and supplies, resources that are in higher demand during a crisis. Each nonprofit with a staff of fewer than 500 is now eligible for a $10 million grant, which has left national organizations like United Way and the YMCA struggling for help. A bill was proposed that would add an additional $60 billion to the pool allocated to nonprofits of all sizes on a first-come-first-serve basis. Nonprofit organizations have been offered a lifeline; the only obstacles they now face are the piles of paperwork and bureaucracy.
Thus came the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion stimulus package passed unanimously by the United States Senate. Of this, approximately $350 billion is allocated to the Small Business Administration (SBA) to help companies with fewer than 500 employees. This way employees can stay on the payroll, and more importantly, can continue to pay their bills.
The novel thing about this portion of the CARES package is that the SBA has been given jurisdiction over the nonprofit sector as well as the small for-profits it typically manages. Nonprofits are highly reliant on government aid under normal circumstances, but especially so as of late with COVID draining their resources. What's more, many nonprofits typically offer humanitarian aid and supplies, resources that are in higher demand during a crisis. Each nonprofit with a staff of fewer than 500 is now eligible for a $10 million grant, which has left national organizations like United Way and the YMCA struggling for help. A bill was proposed that would add an additional $60 billion to the pool allocated to nonprofits of all sizes on a first-come-first-serve basis. Nonprofit organizations have been offered a lifeline; the only obstacles they now face are the piles of paperwork and bureaucracy.
I love hearing about news like this, especially during a time where wee need to hear good news. The fact that the government is willing to help non-profits right now is helpful for the future, as the services these organizations provide are either continually necessary for working against this pandemic, or will be necessary again as soon as we are allowed to gather once again. I must say, though, I am disappointed in the amount they are giving. It seems like the government is helping non-profits almost almost for the sake of the image of it all, as they injected 1.5 TRILLION dollars into the stock market for an hour long bump in the DOW. It really shows where their priorities lie, unfortunately. If we ignore how horrible our government is, we can appreciate a little light in these dark times.
ReplyDeleteIt's nice to hear that they are providing money to help smaller businesses and nonprofits. I hope the layers of bureaucracy don't cause some to be afraid to even apply, because now more than ever people need any aid they can get.
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