The CARES Act contains several new financial supports that could be used by 501(c)3 nonprofit libraries in the face of the Coronavirus economic slowdown. These new provisions are administered by the SBA and are intended to help nonprofits (as corporations) make payroll, pay the rent or mortgage, and meet other obligations for 2.5 months and up to $10 million. Key programs are structured as "forgivable loans" which turn into grants if certain criteria are met. They focus on supporting the non-profit sector, so libraries with a nonprofit corporate structure would be wise to understand the programs and access this federal funding if needed.
According to the 2017 IMLS dataset, there are 1,340 libraries whose legal structure is as a "nonprofit". If they are all registered as 501(c)3 organizations with the IRS, then they are potentially eligible for financial help through Small Business Administration programs that have been enacted or expanded in the CARES Act. The two most significant programs for nonprofit organizations are the Paycheck Protection Program and the Expanded Economic Injury Disaster Loan and Emergency Grants Program. Both are administered by the SBA (Small Business Administration) and are intended to temporarily fund operations and payrolls to keep people employed at the nonprofits. Please consult the SBA website for current guidelines and forms.
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