American Institiuions Aiding Protection of Damaged Art From Middle East

Finding financial relief and support (for individuals and institutions)

Support Costless COVID-19 Resources for the Field:
These resource take been taken out from behind the member paywall to brand them gratis and accessible for all. The electric current crunch is taking a sorry financial toll on cultural organizations, and AAM is no different. In these challenging times, we ask that if you can, consider supporting our advocacy work and making extensive COVID-xix resources freely available for our field, by making a donation or becoming a member of AAM. Thank you for your much-needed back up.

The museum sector is but beginning to assess the impact of closures, travel bans, cancellations of major events, and the implementation of physical distancing related to COVID-19 on both institutions and individual museum workers. AAM is monitoring emerging sources of assistance and documenting potential strategies for navigating the emerging financial crunch.

This section includes resources that may exist useful in developing brusque-term and long-term fiscal strategies for supporting organizations, too as information for museum workers who need their own fiscal plans for riding out the pandemic.

Directory of resources

• Disinterestedness considerations for crafting fiscal strategies
• Legislation related to COVID-19 and museums (updated 2/5/2021)
• Philanthropy
• Financial resources for nonprofits
• Examples of museum adaptations
• Long-term financial strategies
• Fiscal relief and resources for museum workers
• Additional Financial Resources

Equity considerations for crafting financial strategies

It is important to notation that when crises arise, they brand underlying structural inequities more visible. Museum leaders must empathize both the historical context that might have led to the crisis, as well as differences in potential financial outcomes that specific communities, especially the nigh vulnerable (the elderly, the chronically ill, People of Color, the uninsured) might face. Every museum professional and establishment will be affected by COVID-19, but understanding which individuals and museums will be the well-nigh impacted—and how—will be critical for financial decision-making and moving the field forward. For more, please visit our resources folio on centering diversity, equity, accessibility, and inclusion in a time of crisis.

Legislation related to COVID-nineteen and museums

Museums Scored Major Victories in Late December Congressional Deal

On December 27, President Trump signed into law a $900 billion COVID-19 aid package in addition to $1.4 trillion fiscal yr (FY) 2021 appropriations (Omnibus Appropriations and Emergency Coronavirus Relief Act, P.50. 116-260) that include major victories for museums.

The new law includes more than $284 billion for offset and secondPaycheck Protection Program (PPP) forgivable loans targeting small non-profits, including museums, with significant economic loss. And in a major win for museums, the modest concern provisions include $xv billion indedicated funding for Grants for Shuttered Venue Operators, including museums, formerly known equally "Save Our Stages."

You can find the post-obit information and resources below about upcoming webinars, eligibility and application processes. We are continuing to review the new law and expect many federal guidelines to come out in the following weeks that will provide clarification and answers to remaining questions. Nosotros focus beneath on the Paycheck Protection Program, Shuttered Venue Operator Grants, autobus appropriations, and other bug of interest to museums equally nonprofits.

The Brotherhood would similar to express its profound gratitude to Senator Chuck Schumer (D-NY) who championed the effort to include museums in the Shuttered Venue Operators Grants. Nosotros worked closely with his staff and other champions on Capitol Loma on this endeavour to include museums in COVID-19 relief legislation for the past several months and around the clock peculiarly in the last few weeks of 2020. Nosotros also are grateful for yous–our museum advocates–who leapt into action at critical points and compelled your legislators to support museum funding. (Acquire more than about the package, including how to thank your legislators, in the latest Brotherhood Advancement Alert.)

Paycheck Protection Program

WEBINARS:

Marcum Webinar for Museums on COVID-19 Relief Legislation (Recording)

Are y'all looking for more than information to navigate evolving Federal and state guidelines and relief legislation on operations for your museum? Join a gratuitous webinar that was recorded onFebruary 2, AAM in partnership with Raffa – Marcum's Nonprofit & Social Sector Group, to learn from Marcum's nonprofit experts about updates to COVID-19 relief legislation, PPP second draw, Shuttered Venue Operators Grants, eligibility, forgiveness, which opportunities to pursue, and more.Recording and slides available here. (Note that if you did not register for the event yous will demand to complete a grade to view the recording and slides.)

With such great interest in this topic, Marcum created a Q&A certificate to help address the webinar attendees' inquiries and answered with information available at present.

Recent Marcum Webinar, COVID Relief Four: A Deeper Dive , January 7, 2021 recording available here .

The reforms to the Paycheck Protection Programme are more restrictive than the CARES Act. Notably, the new law authorizes aSecond Draw of PPP loans for qualified employers. Charitable nonprofits (as well every bit for-profit businesses) may qualify for a Second Describe loan of up to $2 million only if theya) utilise 300 or fewer employees andb) experience a refuse in gross receipts of 25% in one of the four quarters in 2020 compared to the same quarter in 2019. NOTE: The borderline to submit applications for 2nd draw (or the kickoff draw for those who never received a PPP loan) circular is March 31, 2021.

In the surface area ofPPP loan forgiveness, the legislation expands the types of expenses eligible for forgiveness to include the costs of personal protective equipment and workplace modifications. It too authorizes a short-form approval of forgiveness for loans of $150,000 or less. The law also reverses Small Business concern Administration policy past repealing retroactively a requirement thatEconomic Injury Disaster Loan Grants recipients must pay back $10,000 emergency grants even when PPP loans were forgiven.

New SBA Guidance:

The Minor Business Administration on Jan 6, 2020, released the post-obit guidance that will enable eligible nonprofits, including museums, to take advantage of the new constabulary.

• Acting Final Rule on Paycheck Protection Programme as Amended by Economic Aid Act (January half dozen)
• Interim Final Dominion on Second Describe Loans (Jan six)
• Second Describe Paycheck Protection Plan (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide, Small Business organisation Administration, Jan xix, 2021.

Fundamental PPP updates include:

• PPP borrowers can set their PPP loan's covered period to exist any length betwixt 8 and 24 weeks to best come across their business needs;
• PPP loans volition comprehend boosted expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The Program'due south eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers tin request to modify their Start Describe PPP Loan amount; and
• Certain existing PPP borrowers are now eligible to apply for a 2d Describe PPP Loan.

A borrower is generally eligible for a Second Depict PPP Loan if the borrower:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

New SBA Annunciation:

The SBA on Jan 8, 2020, in consultation with the Treasury Department, appear that the Paycheck Protection Programme (PPP) will re-open the week of Jan eleven for new borrowers and sure existing PPP borrowers. To promote admission to capital letter, initially, but community financial institutions volition be able to make First Describe PPP Loans on Mon, January 11, and 2nd Draw PPP Loans on Wednesday, January 13.  The PPP will open to all participating lenders before long thereafter.

• SBA and Treasury Denote PPP Re-Opening; Result New Guidance

On January 15, 2021, the U.Due south. Small Concern Assistants, in consultation with the U.S. Treasury Department, re-opened the Paycheck Protection Plan (PPP) loan portal to PPP-eligible lenders with $one billion or less in avails for First and Second Describe applications. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit Offset and Second Draw loan applications to SBA.

Larn more

Shuttered Venue Operator Grants

**NEW – SBA Bug Shuttered Venues FAQ: On Jan. 27 (and subsequent updates), the U.S. Small Business concern Administration issued much anticipated data about the Shuttered Venue Operators Grant (SVOG) program, Section 324 of the Economical Aid to Difficult-Hit Small Businesses, Nonprofits and Venues Human activity (Economic Aid Act) signed into law on Dec. 27, 2020, which includes answers to frequently asked questions about the program relevant for museums. The SBA noted that the FAQ will be updated as new information comes available and additional programme details are finalized. The FAQ includes data nigh eligibility, definitions, forthcoming awarding, use of funds, business size/employees, revenue, and other problems.

**NEW – In improver to the FAQ, the SBA posted this helpful matrix on Feb 5: Cross Program Eligibility on SBA Coronavirus Relief Options: A summary of criteria that must be met when considering unlike funding options, that compares the different relief options between PPP applicants vs. SVOG applicants vs. EIDL applicants.

WEBINAR:

Did you lot miss the SBA's Shuttered Venue Operators Grant webinar on January 14, 2021? Information technology's been recorded and is currently available on SBA'southward YouTube channel. Watch this archived webinar for a preliminary overview of the Shuttered Venue Operators Grant program. Watch now

Post-obit are several highlights:

• The application process is still being designed and has non opened, so stay tuned for more updates past checking www.sba.gov/coronavirus. A specific SVOG page is here: Shuttered Venue Operators Grant (sba.gov)
• As the SBA continues to piece of work on full guidance, it will shortly mail service online a top-level matrix comparing PPP to Shuttered Venue Operators Grants.
• Once the grant window opens, grants will be processed "in order of priority." (Full details still to come.)
• In accelerate of opening the grant-making process, SBA volition host hereafter webinars, including a pre-application information session.

In the meantime, SBA advises interested applicants:

• Begin assembling bones data about prior monthly revenue information and list of potential uses of Shuttered Venue Operator grant funds.
• Keep in mind that, in one case the grantmaking process opens, local SBA offices may be a helpful resource in preparing applications.
• Transport questions to SVOgrant@sba.gov

As SBA moves forrad, you tin can stay up to date on the Shuttered Venue Operators Grants by following the SBA on Twitter, subscribing to SBA's e-newsletter, and visiting world wide web.SBA.gov. More specifically, the best source of accurate data for all economic assist programs administered past the SBA is / will be at www.SBA.gov/coronavirusrelief. The Brotherhood is working closely with the SBA, and communicating the concerns and questions of the museum field, as they gyre out this grant program.

IMPORTANT Adjacent STEPS:

In the meantime, the SBA recommends that potential applicants, including museums, take some preparatory actions to be positioned to motility quickly when the procedure opens although no timeline has been indicated. These include registration in the System for Laurels Direction (SAM) at www.sam.gov. You can find instructions for grantees here. The SBA likewise is recommending they get-go organizing their financial statements, revenue enhancement documents, and other governing documents (e.k. articles of incorporation) to be responsive to whatsoever data required to support the application.

The new constabulary provides $15 billion nationally for independent live venue operators, independent motion picture theaters, and cultural institutions such as live performing arts organizations and museums that accept been significantly impacted by the economic furnishings of the pandemic. The legislation volition provide temporary relief not only to the venues, but also to the employees and businesses that support them.

Specifically, the COVID relief package will create a new Small-scale Concern Administration (SBA) grant plan which contained live venue operators, promoters, producers, talent representatives, independent movie theaters, and museums are eligible for. To exist eligible, an entity must take experienced at least 25% lost revenue due to COVID-19. The SBA grants are designed to provide 6 months of fiscal support that could exist used to keep employees paid and museums that are open up stay open for business.
Specifically, the new program includes the post-obit components:

• Create a new grant program at the Minor Business Administration to provide assist to independent alive venue operators, promoters, producers, talent representatives, independent film theaters, and museums.
• Permit recipients to use grants for diverse costs, including those associated with COVID-xix:
  • Hire, utilities, mortgage obligations, payments to contractors, regular maintenance, authoritative costs, taxes, operating leases; and
  • PPE procurement, majuscule expenditures related to meeting state, local, or federal social distancing guidelines.
• Grants are narrowly targeted and appropriately calculated to provide half-dozen months of operating aid for small and independent live venue operators and their manufacture partners.
• Grants are equal to the bottom of 45% of gross revenue during 2019; or $10 million.
• To ensure the hardest hit of eligible applicants receive help, there are ii priority awarding periods. The first 14 days, only eligible entities that have lost more than ninety% of gross acquirement tin employ. The adjacent 14 days, only eligible entities that take lost more than lxx% can utilize. A reserve of twenty% of overall appropriated funds, $3 billion out of the $15 billion provided, will remain bachelor for all other eligible entities to employ for after 28 days.
• There is a $2 billion set up-aside of funds for eligible entities with fifty or fewer employees to ensure smaller applicants are not left out.
• An entity is notwithstanding eligible for a grant if they take received a PPP loan prior to implementation of the program, but the entity may not receive a PPP loan and a grant after implementation of the program.

Shuttered Venue Operator Grants (Department 324)

Summary of Selected Provisions for Additional Detail from Omnibus Appropriations and Emergency Coronavirus Relief Deed, P.L. 116-260 (pages 201- 230 of law [p. 2124-2153 of PDF]

Eligibility and Definitions:

The term ''eligible person or entity'' includes museums that meet the following requirements:

• Information technology was fully operational on February 29, 2020 and has gross earned revenue during the first, 2nd, 3rd, or, only with respect to an application submitted on or after Jan 1, 2021, quaternary quarter in 2020 that demonstrates not less than a 25 per centum reduction from the gross earned revenue during the same quarter in 2019.
• Equally of the date of the grant the museum is open or intends to reopen.
• The museum has the following characteristics:
  • Serving every bit a museum as its principal business organisation activity.
  • Indoor exhibition spaces that have been subjected to pandemic-related occupancy restrictions.
  • At to the lowest degree one auditorium, theater, or performance or lecture hall with fixed audience seating and regular programming.
• The museum does not accept, or is not majority owned or controlled by an entity with, whatever of the following characteristics:
  • Being an issuer, the securities of which are listed on a national securities exchange.
  • Receiving more than than 10 percentage of gross revenue from Federal funding during 2019, excluding disaster assistance.
• The museum is not majority owned or controlled by an entity with more than 2 of the following characteristics:
  • Owning or operating museums in more than one country.
  • Owning or operating museums in more than x States.
  • Employing more than 500 employees as of February 29, 2020.
• The museum did non receive a PPP loan on or after the date of enactment of this Act.
• The term ''museum''— has the meaning given the term ''museum'' past the Museum and Library Services Act (i.e., the legislation authorizing IMLS, Sec. 9172) and shall non include any entity that is organized as a for-turn a profit entity.

(Sec. 9172. The term "museum" means a public, tribal, or private nonprofit agency or establishment organized on a permanent basis for essentially educational, cultural heritage, or artful purposes, that utilizes a professional staff, owns or utilizes tangible objects, cares for the tangible objects, and exhibits the tangible objects to the public on a regular basis. Such term includes museums that have tangible and digital collections and includes aquariums, arboretums, botanical gardens, art museums, children'southward museums, full general museums, celebrated houses and sites, history museums, nature centers, natural history and anthropology museums, planetariums, science and applied science centers, specialized museums, and zoological parks.)

Awards:

• An initial grant shall be in the amount equal to the lesser of the amount equal to 45 percent of the gross earned acquirement of the eligible person or entity during 2019 or $10,000,000.  A supplemental grant shall be in the amount equal to 50 percent of the initial grant.
• First Priority in Awarding Grants.—During the initial 14-day period the SBA shall only award grants to an eligible person or entity with revenue, during the menses beginning on Apr one, 2020 and ending on December 31, 2020, that is not more than ten percent of the revenue of the eligible person or entity during the same menses in 2019, due to the COVID–19 pandemic.
• 2nd Priority in Awarding Grants.—During the 14-day catamenia immediately following the 14-solar day period described in clause (i), the SBA shall only award grants to an eligible person or entity with acquirement that is non more than xxx percent of the acquirement of the eligible person or entity during the same catamenia in 2019, due to the COVID–19 pandemic.
• Grants Later Priority Periods.— After the end of the initial 28-twenty-four hour period period during which the Ambassador awards grants under this paragraph, the SBA may award an initial grant to any eligible person or entity.
• Supplemental Grants. – The SBA may brand a supplemental grant to an eligible person or entity that receives a grant if, every bit of April i, 2021, the revenues of the eligible person or entity for the most recent agenda quarter are not more than thirty per centum of the revenues of the eligible person or entity for the corresponding calendar quarter during 2019 due to the COVID-nineteen pandemic.  However, the SBA may not award a supplemental until it has completed processing each application for an initial grant that is submitted past an eligible person or entity on or before the date that is lx days after the date on which the SBA begins accepting such applications.
• Determination of Revenue.— whatever amounts received under the CARES Deed shall non be counted as revenue; the SBA shall employ an accrual method of accounting for determining revenue.
• Use of Funds.— Amounts received may be used for costs incurred during the period beginning on March i, 2020, and ending on December 31, 2021.

Commanded Expenses:

An eligible person or entity may use amounts received for—

• Payroll costs;
• Payments on any covered hire obligation;
• Whatever covered utility payment;
• Scheduled payments of interest or principal on whatsoever covered mortgage obligation (which shall not include whatever prepayment of principal on a covered mortgage obligation);
• Scheduled payments of interest or master on whatsoever indebtedness or debt instrument (which shall not include whatever prepayment of principal) incurred in the ordinary form of business organization that is a liability of the eligible person or entity and was incurred prior to February 15, 2020;
• Covered worker protection expenditures;
• Payments fabricated to independent contractors, as reported on Form–1099 MISC, not to exceed a total of $100,000 in annual bounty for any individual employee of an independent contractor; and
• Other ordinary and necessary business organization expenses, including maintenance expenses; administrative costs, including fees and licensing costs; Country and local taxes and fees; operating leases in effect as of Feb fifteen, 2020; payments required for insurance on any insurance policy; and advertising, production transportation, and uppercase expenditures related to producing a theatrical or alive performing arts production, concert, exhibition, or comedy show, except that a grant nether this section may not be used primarily for such expenditures.

Other Issues of Interest to Museums: Omnibus Appropriations

Along with the COVID-19 economical relief is a $1.4 trillion FY 2021 appropriations packet that includes a$ii million increase for a total of $40.5 million for the Office of Museum Services at IMLS, and$v.25 million increases for a full of $167.5 million each for the National Endowment for the Arts and the National Endowment for the Humanities.

Other Issues of Involvement to Museums as Nonprofits

WEBINAR:

What's in the New COVID Relief Law for Nonprofits? Nonprofit Boondocks Hall briefing hosted by the National Council of Nonprofits onWednesday, January 13 at 3:00 pm Eastern. Recording and PDF slides here.

Nonprofit Provisions in COVID Relief Legislation – Summary chart with link to the new police force and cites to sections and folio numbers, including problems on Unemployment Insurance & Self-Insured Employers, Charitable Giving Incentives,  Employee Retention Tax Credit (ERTC), PPP Loan Forgiveness, Economic Injury Disaster Loan (EIDL) and more.

(Updated January 19, 2021)

Previous Updates

Congress has now completed three rounds of major legislation to accost the COVID-nineteen pandemic and resulting wellness and economic crises. Below are brief summaries highlighting information relevant to museums and museum professionals. Note that this information represents current understanding and is non intended as legal or fiscal advice. Additional details may get apparent through farther analysis and as federal guidance is released and updated. We volition continue to add information here as appropriate.

Access the recording and slides from the April three webinar on "Crunch Management in Museums" here.

Updated on 6/8/2020.

Coronavirus Assist, Relief, and Economic Security Act (CARES Deed) (Southward. 748), passed March 27

This massive COVID-xix economic relief pecker—an estimated $2.two trillion packet—includes important support for museums, thanks to the outstanding and tireless piece of work of museum advocates. The Coronavirus Aid, Relief, and Economic Security (CARES) Deed included $500 billion in economical stabilization funds, $274 billion in emergency appropriations, and other measures aimed at combating the COVID-19 health care and economical crisis. It likewise included significant expansions in small business lending, unemployment insurance, tax relief to individuals and employers, and health care measures.

The Found of Museum and Library Services (IMLS), the National Endowment for the Humanities (NEH) and the National Endowment for the Arts (NEA) received $200 meg collectively ($50 million for IMLS and $75 1000000 for each endowment). All three agencies are authorized to provide direct grants to back up museum operations, and matching requirements are waived.

• IMLS Authorizes New Grant Flexibilities for Museums with Open Grants
• IMLS: Federal Government Invests $50M in Museums, Libraries to Address Digital Carve up During COVID-19
• $fifteen Million in IMLS CARES Human activity Grants Now Bachelor for Museum and Library Services

         IMLS Webinars

• • Recordings are available on-demand on the IMLS website.

• NEH Receives $75 Million to Distribute to Cultural Institutions Afflicted by Coronavirus
• NEH Offers Emergency Relief Funding to Cultural Institutions Afflicted by Coronavirus (Application Borderline was May eleven)
• National Endowment for the Arts to Distribute $75 meg in Relief Aid to Arts Organizations in Need
• National Endowment for the Arts Announces CARES Act Funding to Support Arts Jobs and Help Sustain Arts Organizations (Application Deadline was April 22)

AAM collaborated with others in the nonprofit sector to brand sure nonprofit organizations, including museums, are eligible for small business loans (with forgiveness provisions) and that the legislation include charitable giving incentives. This commodity from the National Council of Nonprofits summarizes the key provisions relevant to the nonprofit sector, equally did their March 31 program on "Federal Coronavirus Relief Bills: What Do They Mean for Nonprofits?" (webinar recording and slides). Their April seven program (recording) and boosted regularly-updated resources are at present available.

The CARES Act includes three different loan programs designed to assistance organizations keep their workforce employed during the Coronavirus (COVID-19) crisis:

• Paycheck Protection Program(likewise known as Pocket-sized Business Assistants 7(a) Loans) provides loans up to $x 1000000 for eligible nonprofits with 500 or fewer employees, permitting them to cover costs of payroll, operations, and debt service, and provides that the loans be forgiven in whole or in part nether sure circumstances. For more information, including eligibility, how to apply, loan details, forgiveness, and other aid visit the Small-scale Business Administration's Paycheck Protection Program folio. The U.S. Department of the Treasury has posted additional information, including an overview and a sample application for borrowers. On Apr fifteen, 2020, SBA issued an interim concluding rule: Concern Loan Program Temporary Changes; Paycheck Protection Plan outlining the key provisions of SBA's implementation of the plan in formal guidance and requests for public comment due May 15. AAM's comments here. (On April 24, a $484 billion coronavirus relief bill to recapitalize SBA loan programs, also equally provide funding for expanded COVID-19 testing and support for hospitals, was signed into police, including an boosted $310 billion for modest business organization relief through the SBA's Paycheck Protection Programme. $60 billion of these new funds volition be reserved for smaller lending institutions, such equally credit unions, community banks, Community Development Financial Institutions and Minority Depository Institutions. The Small-scale Business Administration resumed accepting PPP loan applications on Monday, April 27 at 10:30AM EDT.)
  • Starting Apr iii, 2020, small businesses and sole proprietorships tin can employ for and receive loans to embrace their payroll and other certain expenses through existing SBA lenders.
  • Starting April ten, 2020, independent contractors and self-employed individuals can apply for and receive loans to encompass their payroll and other certain expenses through existing SBA lenders.
  • Other regulated lenders will be bachelor to make these loans as soon equally they are approved and enrolled in the program.
  • Safe Harbor: In mid-May the Treasury Department announced a new safe harbor for loans of $2 million and under where they are automatically deemed to take made the required certification in good faith. Please run into this frequently updated Treasury FAQ Question 46: "How will SBA review borrowers' required skillful-religion certification concerning the necessity of their loan request?" In short, anything below $2 million volition be accounted to have made the required certification in adept faith. Over $two meg: If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness.
  • Loan Forgiveness: Treasury and the Small Business Administration have released long-awaited guidance on loan forgiveness under the Paycheck Protection Program. The Interim Final Rule on loan forgiveness attempts to clarify numerous questions borrowers have and complements the loan forgiveness application and instructions appear past SBA on May xv. The National Council of Nonprofits prepared an Analysis of the Loan Forgiveness Interim Last Rule. Public comments were due on or about June 25. Fiscal Forcefulness for Nonprofits (FMA) produced a Paycheck Protection Program Toolbox designed to support nonprofit organizations every bit they navigate the Paycheck Protection Plan. The FMA besides has the PPP Forgiveness Racial Equity Initiative (PPP FREI) to provide customized advisory back up around navigating the PPP forgiveness process to nonprofit organizations led by people who self-place as Black, Indigenous and/or People of Color (in the ED/CEO part), and nonprofit organizations in which the staff person managing the PPP forgiveness process self-identifies as Black, Indigenous, and/or a Person of Color.
  • Paycheck Protection Flexibility Deed: On June 5, 2020, the president signed into law the Paycheck Protection Flexibility Human action (H.R. 7010). The new legislation modifies some of the terms related to Paycheck Protection Plan (PPP) Loan Forgiveness. The chief provision is a tripling of the time allotted for PPP loan recipients to spend funds and qualify for forgiveness. This article is an update to Marcum's previous summary about the Loan Forgiveness Application and includes the previous rules along with the changes in the proposed new constabulary.
• Economic Injury Disaster Loans (EIDL) and Loan Advances (SBA seven(b) loans): Eliminates creditworthiness requirements and appropriates an boosted $10 billion to the EIDL programme and so that eligible nonprofits with 500 or fewer employees, as well as cocky-employed workers, tin can get loan advances of up to $ten,000 within three days of a successful application. The loan accelerate provides economic relief to organizations that are currently experiencing a temporary loss of revenue. The loan advance is treated every bit a grant and will not have to be repaid.

The SBA'southward regular EIDL programme provides small businesses with working capital loans of up to $two one thousand thousand that can provide vital economic back up to small businesses to assist overcome the temporary loss of revenue they are experiencing. These loans are not forgivable (except for the $ten,000 advance); the interest rate for nonprofits is 2.75%. Start your application here.

• Main Street Business organization Lending Program/Mid-size Business Loan Programme:On April 9, the U.S. Treasury has released information on the CARES Act Master Street Business organization Lending Program.  (Midsize Loans: Nonprofits employing more than than 500 employees have non received forgivable loan support since the showtime of the pandemic. The House-passed HEROES Act on May fifteen that includes a loan programme with narrow forgiveness opportunities, simply the bill was declared dead on inflow in the Senate. A split bill, the Help Charities Aid Communities Act, introduced past Representative Beatty (D-OH), would create a forgivable loan program for nonprofits with between 500 to 10,000 employers. The bill has been endorsed by numerous national nonprofits, including AAM, with affiliates that currently are not eligible for the Paycheck Protection Program.)

Annotation that organizations with 500 or fewer employees tin use for both the Paycheck Protection Program and an Economic Injury Disaster Loan but cannot receive two loans for the same expenses. The 500-employee limit is calculated using SBA guidance (the average number of people employed for each pay period over the concern's latest 12 agenda months; whatever person on the payroll must exist included as one employee regardless of hours worked or temporary status).

The Senate Small Business organization & Entrepreneurship Committee offers this guide on the SBA provisions here. Also see the National Quango on Nonprofit's helpful chart for an overview of the loans available for nonprofits.

Other relevant provisions in the CARES Act include:

• Charitable Giving Incentives: Includes a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers who do not itemize) for full charitable contributions of upwardly to $300. The pecker likewise lifts the existing cap on annual contributions for those who catalog, raising it from sixty pct of adapted gross income to 100 percent. For corporations, the bill raises the almanac limit from 10 pct to 25 percent. (Section 2205)
• Employee Memory Payroll Tax Credit: For organizations that do non qualify for or receive a loan through the Paycheck Protection Programme, this creates a refundable payroll tax credit of up to $5,000 for each employee per quarter on the payroll when certain conditions are met (e.g., operations were fully or partially suspended due to a governmental order that limited commerce, travel, or grouping meetings due to COVID-19; gross receipts declined by more than 50% when compared to the aforementioned quarter in a prior twelvemonth). Learn more than here.

To acquire more about applying for relief funds—for individuals, small nonprofits, and large nonprofits—made available through the CARES Act, visit this helpful guide from Contained Sector. You tin can too access the full presentations and recordings of the April Contained Sector webinars Navigating the CARES Act and What'south Next for COVID-19 Relief for Nonprofits? online.

Families Start Coronavirus Response Act (H.R. 6201), passed March xviii

The Families First Coronavirus Response Human activity (H.R. 6201), with an estimated cost of $104 billion, goes into effect April i, 2020. This act responds to the growing health and economic crises with policies addressing unemployment insurance, tax credits for affected employers, paid ill and family leave for certain employees, free COVID-19 testing, nutrition assist programs.

This article from the National Council on Nonprofits summarizes employment-related and other major provisions, including:

• Two Weeks of Emergency Paid Sick Leave: Requires employers with fewer than 500 employees, including nonprofits, to provide employees two weeks (upward to lxxx hours) of paid sick leave at the employee'due south regular rate of pay (upwardly to $511/day and $5,110 over the two-week period) if the employee is unable to work considering the employee is quarantined and/or experiencing COVID-19 symptoms. Also requires two weeks (up to 80 hours) of paid sick leave at 2-thirds the employee's regular pay (up to $200/day and $2,000 over the two-calendar week menstruum) if an employee is unable to work because of a bona fide need to care for an individual discipline to quarantine or to care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19.
• Boosted Ten Weeks of Emergency Family and Medical Go out: Requires employers with fewer than 500 employees, including nonprofits, to provide up to an additional ten weeks of emergency family unit and medical exit (following the initial two weeks of emergency paid sick get out) at two-thirds the employee's regular charge per unit of pay where an employee, who has been employed for at least 30 calendar days, is unable to work due to a bona fide need for leave to care for a child whose school or child intendance provider is airtight or unavailable for reasons related to COVID-19.

The U.Southward. Department of Labor has shared fact sheets on employee rights and employer requirements, too as initial guidance on the human action—addressing questions such as how to make up one's mind if an employer has fewer than 500 employees, how to calculate leave hours and pay rate, modest business concern exemptions, much more. The DOL continues to update and revise this guidance. For the latest from the DOL, visit their page on COVID-19 and the American Workplace.

• Refundable Payroll Tax Credits: Employers paying for the mandated paid get out are entitled to claim a refundable tax credit.

The U.S. Treasury Department, Internal Revenue Service (IRS), and U.Due south. Department of Labor (Labor) have appear that pocket-sized and midsize employers tin can brainstorm taking advantage of ii new refundable payroll tax credits provided under the Families First Coronavirus Response Act designed to immediately and fully reimburse them, dollar-for-dollar, for the price of providing coronavirus-related leave to their employees. More than data on this relief to employees and small and midsize businesses (including nonprofits) is bachelor here.

• Emergency Unemployment Insurance Stabilization and Access Act: Establishes a new act to provide $one billion for emergency grants to states for processing and paying unemployment insurance benefits.

Coronavirus Preparedness and Response Supplemental Appropriations Human activity (H.R. 6074), passed March 6

This legislation provides $8.3 billion in supplemental appropriations for federal agencies to respond to the COVID-nineteen pandemic, focused on coronavirus prevention, preparation, and response efforts.

Other relief funds

Giving Compass and the National Eye for Family unit Philanthropy (NCFP) have compiled a vetted listing of COVID-nineteen relief funds. As of March 24, 2020, this list includes more ninety funds established to accost immediate and long-term needs related to COVID-nineteen. Also, monitor this spreadsheet of relief funds existence compiled by the Council on Foundations.

Philanthropy

A big number of foundations recently created and signed a pledge to provide their grantees with "the flexibility and grace to respond rapidly and confidently in this critical moment." These foundations have also expressed a willingness to provide funding for organizations they do not currently fund. The commitments of those foundations signing the pledge include:

• Loosening or eliminating restrictions on current grants. (This can include converting project-based grants to unrestricted support; accelerating payment schedules; and non holding grantees responsible if conferences, events, and other project deliverables must be postponed or canceled.)
• Making new grants as unrestricted as possible, and then nonprofit partners take maximum flexibility to respond to this crisis. They will also support organizations created and led by the communities most affected that they may non fund currently.
• Reducing what they ask of nonprofit partners such as postponing reporting requirements, site visits, and other demands on their time during this challenging period.

Fiscal resources for nonprofits

The DeVos Institute for Arts Management at the University of Maryland has created a list of some practical steps during a time of uncertainty, including actions to take with funders, vendors, ticket holders, creditors, and lenders.

Considerations on marketing during COVID-19 closures, from Colleen Dilenschneider of IMPACTS enquiry.

The Chronicle of Philanthropy has published Help for Nonprofits During the Coronavirus and Uncertain Economical Times, a gratuitous pick of articles from its archives. This collection includes essays on teleworking, engaging major donors, helping the vulnerable, and coverage of how foundations are responding to the demand for COVID relief.

The Innovation in Nonprofit Finance Blog provides helpful information in this Fiscal Leadership in the Face up of Impossible Choices mail.

How museum endowments touch Paycheck Protection Program (PPP) loans.

Examples of museum adaptations

Some museums are converting upcomingfundraising galas into digital events:

The Hermann-Grima + Gallier Historic Houses in New Orleans is moving their annual  Vino Fête online, complete with silent auction, and encouraging attendees to participate from abode (with a glass of wine, of course).

The Tenement Museum's virtual gala, held the evening of April 28, offered attendees a short, breezy digital program and the choice of receiving "a Lower East Side box dinner when things return to normal."

The Japanese American National Museum's virtual gala included a Livestream programme during which they will announced the winner of their raffle (the prize is a 2020 Lexus RX 450h!), held an online auction, and solicited donations for their education programs.

Long-term financial strategies

TrendsWatch: The Hereafter of Financial Sustainability

This twelvemonth's edition of the Center for the Future of Museum's annual forecasting study investigates the trends destabilizing traditional income streams, documents how museums are optimizing existing revenue, and highlights emerging forms of support. Museums tin use the report to brainwash stakeholders on the challenges of funding a nonprofit museum, as a framework for assessing existing income streams and identifying areas for improvement, and as a springboard to building diverse forms of income to support their piece of work.

Financial relief and resource for museum workers

This collection of resources is designed for museum workers who need their own fiscal plans for riding out the pandemic, whether they are working but faced with the demand to take care of themselves or family members, or currently unemployed.

AAM is a proud partner of MuseumExpert.org which helps pair out-of-piece of work museum staff with prospective employers.

Museum workers who are nonetheless employed should familiarize themselves with the provisions of the Families Get-go Coronavirus Response Human action: Employee Paid Leave Rights. Generally, the act stipulates how employees of covered employers are eligible for paid sick leave and paid expanded family unit and medical leave. (Covered employers are companies with up to five hundred employees, though businesses with fewer than fifty employees tin apply for exemption for some of the provisions of the human action.) This short video from volunteer Lawyers for the Arts of Massachusetts provides an overview of unemployment and developments under the CARES Act.

The Department of Labor provides an overview to Applying for Unemployment Insurance Benefits. CNN has created its ain Guide to Filing for Unemployment Benefits that is written in plain English and addresses some practical considerations near accessing benefits during the trounce of applications resulting from the current spike in unemployment. Museum Workers Speak has besides created a Museum Workers Relief Fund to aid those adversely afflicted by the pandemic.

A gratuitous tool called Hello Landlord, from legal experts, helps tenants apace typhoon a letter to their landlord to explicate why they haven't paid—and outline their right to avoid evictions under the CARES Human action.

Many museum workers are working artists also. This article from Artnet summarizes Emergency Grants, Medical Funds, and Other Resource to Assistance Artists in Need of Aid. Fractured Atlas is also maintaining a list of Emergency Resources for Artists in the Wake of COVID-19.

Fast Company's "9 Steps to Take Right Now If Yous've Been Laid Off" covers some financial deportment, but besides things to do to maintain your psychological wellness, and prepare to begin a task search, if that becomes necessary.

In this stressful time, self-intendance is more important than always. The Anxiety and Low Association of America is offering Helpful Practiced Tips and Resources for Coronavirus Anxiety. Smoothen has compiled a toolkit on how to Care for Your Coronavirus Anxiety. This might also be a good time to download a copy of Seema Rao's Objective Lessons: Self-care for Museum Workers (which is complimentary on Kindle Unlimited). The Brotherhood weblog recently posted Seeking Self-Care Solutions, for COVID-19 and Beyond.

Additional financial resources

• AAM'southwardCenter for the Future of Museums recently published:
  •  Three Scenarios for Financial Survival or download the guide.
• ArcheoAnalytics posted to Medium a list of ways to produce revenue using digital revenue models.
• Check out theAlliance's compiled resources and tip sheets on:
  • Advocating for Museums During COVID-19
  • COVID-19 Museum Field Federal Relief Update
  • Earned Income (members tin access this page from the Resource Library)
  • Financing (members can access this page from the Resource Library)
  • Financial Stability in Crisis tip sheet
  • Retrenchment (members can access this page from the Resource Library)

• The COVID-19 Toolkit fromxx Degrees is a suite of materials that a nonprofit leader needs in the next lx days to plan, pivot and manage through the COVID-xix crisis
• Americans for the Artshas created a dashboard on the impact of COVID-19 on the arts and culture sector.
• Arts Administrators of Color has Arts Leaders of Colour Emergency Fund with lots of useful information and resources.
• Campbell & Visitorprovide insights on Using Digital Engagement to Achieve Donors During the COVID-nineteen Outbreak.
• Candid, a Foundation Center and GuideStar visitor, created a useful resources of funding stats during this time of incertitude.
• The Chronicle of Philanthropy provides useful manufactures on a number of issues related to COVID-19:
  • Grants From Private Foundations Projected to Refuse 4.8% This Year
  • How iv Nonprofits That Aren't on the Front Lines Are Raising Coin During the Crunch
  • How Nonprofits Can Employ for Loans and Other Emergency Benefits
• TheDeVos Plant offers Practical Steps During a Time of Uncertainty with tips to assistance remain financially stable.
• DEXIBIT presented COVID-19 Response resources for company attractions, to discuss impacts, approaches, and strategies for managing visitor attractions through the pandemic.
• FEMA has created the Pandemic Flu Continuity of Operations Addendum Template to assistance institutions prepare for continuing operations during the pandemic.
• Fidelity Charitable wrote an article about COVID-19 and philanthropy: How donor behaviors are shifting among pandemic.
• Gratuitous Direction Library offers the Basic Overview of U.S. Nonprofit Financial Direction which discusses the processes and primal terms.
• The Gaylord and Dorothy Donnelley Foundation have established a Collections Emergency Relief Fund to provide immediate support to smaller collections organizations in both Chicago and the Lowcountry.
• Giving Compass has a list of Coronavirus and COVID-xix Response and Relief Funds.
• GivingTuesdayis offering microgrants to "innovative approaches to catalyzing generosity, empathy, equity and justice" under its Starling Collective project.
• Harvard Business organization Review (HBR) looks at the legal obligations companies face around coronavirus. And the eight critical questions employers should be asking equally they prepare for or respond to the spread of the virus.
• Huntington T. Block Insurance offers this resources on Managing a Black Swan Effect.
• The League of American Orchestras developed a set of resources for its members including a link to some potential funding resource to help should the demand arise.
• McKinsey & Company's commodity on COVID-xix: Implications for concern provides insights on the next "normal".
• The National Endowment for the Artshas a list of COVID-nineteen Resource for Artists and Arts Organizations.
• TheNonprofit Finance Fund has developed COVID-xix Tools and Resources for Nonprofits including a cash period tool, scenario template, and other resources.
• Nonprofit Quarterly published this article on A Year of Upkeep Revisions Lies ahead for Many Nonprofits which discusses the fashion nonprofits will need to pin on budgeting following the COVID-19 pandemic.
• Propel Nonprofits has a useful list of resources for nonprofits with finance-related links, including a cash menstruum template.
• TheSociety for Human Resource Management (SHRM) provides resource and communication on dealing with communicable diseases in the workplace, including Coronavirus.
• Legal advice firmVenable conducted a webinar on COVID 19 – What Your Nonprofit Needs to Know: Legal Issues Arising from the Novel Coronavirus, which discusses insurance-related issues nonprofits might face equally well as a workflow to determine whether or not to abolish events.

Disclaimer: Please note that the data provided hither is for advisory purposes but and not for the purpose of providing legal advice. For data specific to your institution or situation, you should seek legal advice from counsel in your relevant jurisdiction.

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Source: https://www.aam-us.org/programs/about-museums/financial-relief-and-resources/