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PPP Loans for 501(c)(6) Organizations

3 Feb 2021 9:13 AM | Anonymous

Under the Consolidated Appropriations Act of 2021, Section 501(c)(6) organizations are now eligible for Paycheck Protection Program (PPP) loans of up to US$10M. This includes local chambers of commerce, labor and trade organizations, business boards, destination marketing organizations, and other similar groups. However, associations that meet the following criteria are excluded from eligibility: 

  • Receive more than 15% of receipts in lobbying fees.
  • Conduct more than 15% of activities on lobbying efforts.
  • Spend more than US$1M in lobbying fees (during the most recent tax year that ended prior to February 15, 2020).
  • Are considered professional sport leagues or political organizations.
  • Have more than 300 employees.

PPP loans can be used for payroll, rent, covered mortgage interest, and utilities. Borrowers can qualify for a loan of up to 2.5x their average monthly payroll costs and can apply for forgiveness after the completion of the 24-week period in which the funds must be spent.

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