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Paycheck Protection Program and Loan Forgiveness

Under the CARES Act, organizations, including 501(c)(3) nonprofits, and self-employed individuals gained access to Paycheck Protection Program (PPP) forgivable loans in 2020, intended to provide rapid relief that will keep workers on the payroll and help self-employed workers. Loans are provided by local lending institutions that are authorized by the Small Business Administration (SBA). In December 2020, more than $280 billion in new PPP relief was signed into law, including reopening the program for first-time applicants, providing a second opportunity for 2020 loan recipients to seek forgivable loans, and revising the loan forgiveness process for both 2020 and 2021 loan recipients. In March 2021, an additional $7.25 billion was added to PPP resources, and eligibility changes will allow nonprofits with no more than 500 employees at each location to be eligible for forgivable loans. On March 25, 2021, Congress voted to expand the PPP application deadline from March 31 to May 31, 2021.

Eligibility

Loan Forgiveness

Second Draw

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