Not-for-profits, like many other small businesses, have struggled during the current socioeconomic conditions that have arisen as a result of COVID-19. Many not-for-profits went into March providing services for the communities of Connecticut while running at a loss, dependent on Federal, State and foundation grants. With the changes we’ve experienced during the coronavirus pandemic, those sources of funding are no longer cutting the muster.
Not-for-profits were eligible for the Paycheck Protection Program (PPP) as they are considered a business, they just needed to meet the same qualifications as other businesses. In addition, many social service organizations received additional funds, called Coronavirus Relief Funds (CRF) to help support the extra costs due to COVID that are not covered by PPP funding such as PPE (personal protection equipment) and sanitizing measures. This funding was provided to states through Federal funds.
Now the next hurdle, the Organizations that received both CRF funds to pay for COVID related expenditures and received PPP funds, no longer qualify to receive these CRF funds. If an Organization received PPP funds, they do not qualify to receive CRF funds as well. It is currently unknown if the Organization has the option to return PPP funds or CRF dollars, or one if one is prioritized over the other.
Similar with the PPP rules and information, more guidance is expected from the State. Currently, lobbying measures are being undertaken by the Connecticut Community Nonprofit Alliance.