The Iowa West Foundation has compiled the following resources for nonprofits and small businesses seeking relief due to the COVID-19 crisis.
AmeriCorps Volunteer Info
Volunteer Iowa and the Iowa Economic Development Authority Center for Rural Revitalization are making dozens of AmeriCorps positions available at no cost to local organizations active in COVID-19 recovery efforts or struggling with the effects of COVID-19. Initially, at least 70 2-3-month full time positions are being created, but they will consider expanding the program if needs are present. Volunteer Iowa wants to work with your agency on member placements that helps support your mission.
- AmeriCorps members can provide direct service activities like community gardening, supporting food bank activities, supporting a shelter, facilitation of transportation or providing online tutoring for kids while not in school.
- AmeriCorps members can also focus on capacity building activities related to the elimination of poverty such as researching grant opportunities or designing and implementing a volunteer program.
Coronavirus Aid, Relief, and Economic Security (CARES) Act
(Source: Nonprofit Association of the Midlands, a member of the National Council of Nonprofits)
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides significant funding for businesses, hospitals, schools, and social support programs, among many other things. Below are key nonprofit issues.
Charitable Giving Incentive: Includes a new above-the-line deduction (universal or non-itemized deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to contributions made in 2020 and would be claimed on tax forms next year. The bill also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the bill raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap.
Economic Injury Disaster Loans (EIDL): Eliminates creditworthiness requirements and appropriates an additional $10 billion to the EIDL program so that eligible nonprofits and other applicants can get checks for $10,000 within three days.
Emergency Small Business Loans (emergency SBA 7(a) loans): Provides funding for special emergency loans of up to $10 million for eligible nonprofits and small businesses, permitting them to cover costs of payroll, operations, and debt service, and provides that the loans be forgiven in whole or in part under certain circumstances.
- General Eligibility: Available to entities that existed on March 1, 2020 and had paid employees.
- Nonprofit Eligibility: Available for charitable nonprofits with 500 or fewer employees (counting each individual – full time or part time and not FTEs). The final bill does not include a provision in earlier drafts that would have disqualified nonprofits that are eligible for payments under Title XIX of the Social Security Act (Medicaid).
- Loan Use: Loan funds could be used to make payroll and associated costs, including health insurance premiums, facilities costs, and debt service.
- Loan Forgiveness: Employers that maintain employment between March 1 and June 30 would be eligible to have their loans forgiven, essentially turning the loan into a grant. Section 1106.
Employee Retention Payroll Tax Credit: Creates a refundable payroll tax credit of up to $5,000 for each employee on the payroll when certain conditions are met. The entity had to be an ongoing concern at the beginning of 2020 and had seen a drop in revenue of at least 50 percent in the first quarter compared to the first quarter of 2019. The availability of the credit would continue each quarter until the organization’s revenue exceeds 80 percent of the same quarter in 2019. For tax-exempt organizations, the entity’s whole operations must be taken into account when determining the decline in revenues. Notably, employers receiving emergency SBA 7(a) loans would not be eligible for these credits.
Expanded Unemployment Insurance: Includes coverage for workers who are furloughed, gig workers, and freelancers. Increases payments by $600 per week for four months on top of what state unemployment programs pay.
Industry Stabilization Fund: Creates a loan and loan guarantee program for industries like airlines to keep them solvent through the crisis. It sets aside $425 billion for “eligible business” which is defined as “a United States business that has not otherwise received economic relief in the form of loans or loan guarantees provided under” the legislation. It is expected, but unclear, whether charitable nonprofits qualify under that definition for industry stabilization loans. Mid-sized businesses, including nonprofits, that have between 500 and 10,000 employees are expressly eligible for loans under this provision. Although there is no loan forgiveness provision in this section, the mid-size business loans would be charged an interest rate of no higher than two percent and would not accrue interest or require repayments for the first six months. Nonprofits accepting the mid-size business loans must retain at least 90 percent of their staff at full compensation.
The Paycheck Protection Program provides nonprofits with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
(“PPP”) authorizes up to $349 billion in forgivable loans to nonprofits to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone. The loan amounts will be forgiven as long as: 1) The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and 2) Employee and compensation levels are maintained.
Self-Funded Nonprofits and Unemployment: Only reimburses self-funded nonprofits for half of the costs of benefits provided to their laid-off employees.
Advance Southwest Iowa
Advance Southwest Iowa is offering assistance to small businesses during COVID-19. They have a variety of resources listed on their website: https://advancesouthwestiowa.com/covid-1
Federal Tax Deadline Extended
The Federal Tax deadline has been delayed until July 15, 2020. This allows all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. Additionally, this allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest.
Iowa Business Relief Program
This is a grant available through the Iowa Economic Development Authority. The purpose of the Iowa Small Business Relief Grant and Tax Deferral is to provide financial assistance and/or tax deferral to businesses that are experiencing business interruption due to the COVID-19 virus. This grant will provide financial assistance through the Iowa Economic Development Authority (IEDA) in the amounts of $5,000 – $25,000. Learn more at www.iowabusinessrecovery.com.
Iowa Western Small Business Development Center
The SBDC is offering one-on-one technical assistance to businesses as they navigate this crisis and have been through both the Iowa Small Business Relief Grant and Tax Deferral and the SBA Economic Injury loan application. Learn more at www.iowawesternsbdc.com or call them at 712-325-3350.
The SBA’s Economic Injury Disaster Loans (EIDL) offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome temporary loss of revenue. Learn more at https://www.sba.gov/disaster-assistance/coronavirus-covid-19.
The SBDC can also help navigate through other issues that the COVID-19 crisis is causing including financial analysis, distribution, sales, buying, marketing, HR Issues and more.
Businesses with an existing SBA 504 loan that are in good standing qualify for deferment up to 6 months. The deferment may be for partial or full monthly payment amounts. Learn more here: https://www.iowabusinessgrowth.com/wp-content/uploads/2020/03/COVID-19-Handout-Mar-24-2020.pdf
Targeted Small Business Sole Operator Relief Fund
This is a grant that provides between $5,000 – $10,000 to sole proprietorship or single member LLC businesses that are also certified as Targeted Small Business (TSB) by the State of Iowa. If you are not already certified, you may submit a certification application and be considered for the assistance through the program. Learn more here: https://www.iowaeconomicdevelopment.com/tsb
Unemployment COVID-19 Benefits
If employees are laid off, have to stay home to self-isolate, care for family members or have an illness related to COVID-19, they can receive unemployment benefits provided eligibility requirements are met. Claims that are fiiled as a direct or indirect result of COVID-19 will not be charged to employers. Learn more at: https://www.iowaworkforcedevelopment.gov/updates-and-resources-about-covid-19
How to Get Help
The Food Bank of Iowa also has a searchable site/map to learn which food bank serves your area.
3. Track. If you test positive for the virus, you will be asked to answer more questions to help prevent spreading the virus. You may be asked where you have traveled recently and who you have been in contact with.
Heartland AEA has compiled a list of resources “10 Considerations For English Learners During School Closures” for ELL students and teachers to offer additional tools and supports while transitioning to online distance learning.
How to Give Help
Donate to the Southwest Iowa COVID-19 Response Fund at Pottawattamie County Community Foundation
From the Iowa Department of Cultural Affairs
- Buy a membership or season tickets for your local arts and cultural nonprofit.
- Shop online or buy gift cards to Iowa museum gift shops, galleries and art-supply stores.
- Donate the cost of canceled event tickets back.
- Take an #IowaCulture Coffee Break at 3 p.m. every weekday on Facebook to show your support for Iowa artists, musicians and museums.