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Natalie Weiner

Manager, Policy & Advocacy

Financial Relief for Behavioral Health Organizations Available In Response to the Pandemic

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Last Friday, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law, creating opportunities for small businesses and non-profits to apply for certain loans and tax credits that will help relieve the financial burden of the COVID-19 pandemic. Read more for summaries of the new provisions.


Who is eligible? Small businesses and private non-profit organizations of any size are eligible for purposes of the EIDL program.

What does this loan do? EIDL provides loans of up to $2 million, with an emergency grant of up to $10,000. The advance funds will be made available within three days of a successful application and will not have to be repaid. Beyond the advance loan, EIDLs may offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Even if the applicant is denied for the larger loan, they will not have to repay the $10,000 advance.

These loans may be used to provide paid sick leave to employees unable to work due to COVID-19, maintain payroll during business disruptions, meet increased costs arising from supply chain disruption, make rent or mortgage payments, and repay obligations that cannot be met due to revenue loss.

When and where can I apply? You can apply now and the application is available here.


Who is eligible? The PPP is available to any 501(c)(3) non-profits that employ not more than either: 500 employees; the size standard established by the SBA for their industry; or a business that has more than one physical location (with 500 or fewer employees per location). Sole proprietors, independent contractors, and self-employed individuals are eligible for PPP loans, as well.

What does the program do? PPP authorized up to $349 billion to support employers in maintaining job retention and covering certain other expenses. Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount. Loan payments will be deferred for six months. If an employer maintains their workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.

The employer can use the proceeds on the loans for things such as payroll costs, benefits, interest on mortgage obligations, rent, and utilities.

When can I apply? Starting today, April 3, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Independent contractors and self-employed individuals can apply beginning April 10.

You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Visit for a list of SBA lenders. The application form can be found here.

FYI: An organization can apply for both a PPP and an EIDL, but cannot use them towards the same expenses. For additional guidance, please see How does this program interact with SBA’s Economic Injury Disaster Loans (EIDL) found here.


The Department of the Treasury will establish an Exchange Stabilization Fund. $454 billion will be available as loans, loan guarantees, and investments for eligible states, municipalities and businesses. Legislation states that the Secretary of the Treasury should, to the extent possible, make loans and investments available to mid-size and non-profit organizations between 500 and 10,000 employees. The CARES Act requires the Treasury Secretary to publish procedures for application and minimum requirements by April 6, 2020.


A temporary Pandemic Unemployment Assistance program was created and will operate through December 31, 2020. This will provide payment to those not traditionally eligible for unemployment benefits (self-employed, independent contractors, those with limited work history, and others) who are unable to work as a direct result of the coronavirus public health emergency. The CARES Act provides payment to states to reimburse non-profits, government agencies, and Indian tribes for half of the costs they incur through December 31, 2020 to pay unemployment benefits.

In addition to these financial relief provisions, the CARES Act includes employee retention tax credits and a delay of payroll taxes through the end of the year. The National Council is working with outside counsel to provide comprehensive resources regarding these tax implications.  Stay tuned for further guidance.