The CARES Act, Public Law No. 116-136, includes a significant new program that extends loans to support small businesses (including non-profit entities) during the COVID-19 crisis. When initially introduced, the bill included an exception that denied loans to non-profit entities that accept Medicaid for reimbursement. The National Women’s Law Center led a sign-on letter opposing this nonsensical and harmful exclusion. Over 270 organizations signed the letter opposing the exclusion. Fortunately, the final bill that passed into law did not include the exception.
Read the letter text below or read the full letter here.
Dear Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy,
Our country is facing an unprecedented public health and economic crisis. During this crisis, non-profits across the country are answering the call of their communities, providing critical care and services. Yet, they are also struggling to manage loss of revenue and operational disruption. Like other small businesses, they need support to survive this crisis and must be included in the next COVID-19 relief package.
We oppose the provisions in S. 3548, the CARES Act, introduced by Senator McConnell, that deny critical sustaining loans to non-profits. The provisions in S. 3548 exclude non-profits that provide Medicaid-reimbursed services and establishes caps that would exclude many nonprofits. Community-based nonprofits provide essential services to people in their communities, particularly those most vulnerable to COVID-19. But at the same time these organizations are seeing drastically increased demands for their service, they are also losing significant revenue due to public health emergency measures. Simply put, these organizations are a lifeline for the very communities that most need help, but face threats that are impossible to overcome without assistance from the federal government. If nonprofits, including those that provide reproductive health care, mental health care and community-based nursing care, were to be carved out, health care access and support across the country will be devastated.
We must act now and call for the removal of these limitations from any final package addressing COVID-19’s destruction on businesses and non-profits