Guidance to Hall Associations on the Cares Act

Potential Availability of $10,000 Federal Economic Injury Disaster Grant

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On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2 trillion stimulus package thought to be the largest in U.S. history.

The CARES Act expands or establishes multiple loan programs for qualifying businesses. We believe the expansion of the Small Business Administration’s Economic Injury Disaster Loans (EIDL) program may be of particular interests to Masonic Hall Associations.

Economic Injury Disaster Loans Program

The Small Business Administration issues loans to small businesses (less than 500 employees) impacted by natural disasters.  The CARES Act extends the EIDL program to the COVID-19 crisis. The CARES Act also added a new feature to the EIDL program.  It authorized $10 billion in emergency grants (also referred to as advances) to applicants for EIDLs, with a maximum of $10,000 per emergency grant. These grants are required to be dispersed within three days of the applicant filing an EIDL program application. 

The $10,000 grant is not required to be repaid, even if the applicant is subsequently denied an EID loan. Nonprofits are eligible for EIDL program assistance. The $10,000 grants must be used for one or more of the following purposes:

  • Providing sick leave to employees not able to work due to the direct effects of COVID-19
  • Maintaining payroll during business disruptions and slowdowns
  • Meeting increased supply chain costs
  • Making rent or mortgage payments
  • Repaying obligations that cannot otherwise be paid due to lost revenue

We believe that Hall Associations that have suffered a diminution in revenue as a result of the COVID-19 crisis may be eligible for the emergency grants.  We encourage Hall Associations that have been financially hurt by COVID-19 (for example, because of losses in rent or single-event revenue) to explore the need for, and potentially apply for, the EIDL program.  If your Hall applies for this relief, we ask that you notify our real estate team at realestate@freemason.org, so that we understand how many Halls are seeking this relief and know who we can learn from.

More information about the grants can be found at the SBA’s website here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

Applications for the EIDL program (loans and grants) may be made directly with the SBA on the SBA’s website at:  https://covid19relief.sba.gov/#/

 

Halls can apply for a $10,000 loan under the SBA Disaster Loan Assistance Program. Apply for the loan here: https://www.sba.gov/funding-programs/disaster-assistance/coronavirus-covid-19#/

Here is an answer key to help you complete the application for your hall. 

Hall Associations do not need the prior approval of the Masonic Properties Committee to apply for the $10,000 grant.  However, applications for an EIDL grant/loan of greater than $10,000 do require prior approval, a CMC requirement for all loans obtained by Hall Associations.

Under the eligible entity verification section (disclosures), a Hall must choose the following option: Applicant is a private non-profit organization that is a non-governmental agency or entity that currently has an effective ruling letter from the IRS granting tax exemption under sections 501(c),(d), or (e) of the Internal Revenue Code of 1954, or satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law, or a faith-based organization. 

SBA PAYCHECK PROTECTION PROGRAM

The CARES Act also created a new SBA Paycheck Protection Program (PPP).  At this time, we do not believe that the PPP is available to Hall Associations that have a 501(c)(2) federal tax status.  If you need assistance with completing the online application for the EIDL program, please contact the real estate team at (415) 292-9111 or realestate@freemason.org

Hall Associations do not need the prior approval of the Masonic Properties Committee to apply for the $10,000 grant.  However, applications for an EIDL grant/loan of greater than $10,000 do require prior approval, a CMC requirement for all loans obtained by Hall Associations.

Under the eligible entity verification section (disclosures), a Hall must choose the following option: Applicant is a private non-profit organization that is a non-governmental agency or entity that currently has an effective ruling letter from the IRS granting tax exemption under sections 501(c),(d), or (e) of the Internal Revenue Code of 1954, or satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law, or a faith-based organization. 

SBA PAYCHECK PROTECTION PROGRAM

The CARES Act also created a new SBA Paycheck Protection Program (PPP).  At this time, we do not believe that the PPP is available to Hall Associations that have a 501(c)(2) federal tax status.  If you need assistance with completing the online application for the EIDL program, please contact the real estate team at (415) 292-9111 or realestate@freemason.org

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