CEO DATELINE—ASAE applauds new House stimulus package
CEO DATELINE—ASAE applauds new House stimulus package
- October 1, 2020 |
- WILLIAM EHART
Associations of any size—including previously excluded groups organized as 501(c)(6)s under the tax code—would be eligible for Paycheck Protection Program loans under a revised House Democratic stimulus bill announced earlier this week
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But there's a catch in the House's proposed $2.2 trillion HEROES Act, ASAE noted in a letter to members.
The proposal would exclude 501(c)(6)s for which lobbying represents more than 10% of "receipts" or "activities"—vague language that originated in the Senate, according to ASAE Vice President of Public Policy Mary Kate Cunningham.
"There are no clear definitions in the bill that apply to ‘lobbying receipts' or ‘lobbying activities,'" Cunningham wrote.
"Sure, we can assume what the Small Business Administration—the agency in charge of the PPP—would consider as ‘receipts' or ‘activities,' but we simply don't know. Without explicit direction from Congress, SBA will have the flexibility to establish its own definitions and criteria if it so chooses."
Another hitch is that the bill's cost would have to be cut substantially to pass the Senate, she said.
Since Cunningham's letter though, there may have been a positive development for potential passage of the bill before Congress adjourns: The House on Wednesday postponed a vote on it after discussions between House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin. That could mean the House is revising the package to increase its chances in the Senate.
Cunningham said the House package also included other provisions ASAE sought, include a second round of PPP loans for employers with under 200 employees, expanded and clarified Economic Injury Disaster Loan program and significantly expanded Employee Retention Tax Credit.
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