COVID-19 Resources for Land Trusts

Update as of March 17

Even as we anticipate the end of the coronavirus pandemic, the Land Trust Alliance remains dedicated to ensuring we provide critical services to our members. This includes doing all that we can to identify information and new resources to help land trusts during this challenging time, including working as part of a national coalition of nonprofits to ensure that emergency response legislation includes support for our community.

On March 11, the president signed into law the America Rescue Plan Act of 2021. The bill delivers additional relief for individuals, businesses and nonprofits. It also provides $350 billion in relief for state and local governments. The funds are restricted to cover costs from COVID response and must be spent by Dec. 31, 2024.

As additional information and resources become available, this site will be updated frequently. 

The Alliance Learning Center,* also includes a curated collection of COVID-19 resources and information on topics ranging from human resources to fundraising and more. 

Paycheck Protection Program update

The Paycheck Protection Program loan application process is open until May 31. An additional $7.25 billiion for first or second PPP loans is available. We strongly encourage members interested in applying for these loans to do so now.

If you are interested in pursuing a PPP loan, we recommend you contact your bank or credit union as soon as possible. Banks accept and process applications; the Small Business Administration will pay the banks for handling the loans or grants. If you received a PPP loan last year, you can apply for another. If you didn't, you can apply too — under easier rules.

The bill expanded eligibility to include nonprofits with more than 500 employees working from multiple locations. No more than 500 employees can work at any one location to be eligible. 

You can review the SBA Interim Final Rule, which provides agency rules for administration of the program, for details on the loan program for first-time PPP applicants or second-time PPP applicants.

The bill retains a requirement for second-draw loans that you must show gross receipts in any quarter of 2020 were at least 25% less than your gross receipts (see Internal Revenue Code Section 6033 for a definition) in the same quarter in 2019.

The loans are limited to 2.5 times your average monthly payroll costs (including most benefits) in 2019, and the loan can total no more than $2 million. There are some special guidelines for seasonal employers, and the program offers loans to farmers and ranchers through federal farm credit organizations.

The loans charge 1% interest, and SBA pays your banker to provide them, but the loans will be forgiven if they are used to pay wages, mortgage interest and operational expenditures including utilities. Forgiveness is capped, however, at payroll costs divided by 0.60. 

Loans under $150,000 will be forgiven with the submission of a one-page application in which you attest that you have used the loan as required. Larger loans will require a bit more paperwork and face the possibility of audit.

Extended provisions to encourage charitable donations

You will want to alert your organization’s supporters that COVID-relief legislation includes provisions to encourage Americans to contribute to charitable organizations by allowing taxpayers to claim up to $300 for cash donations to charitable organizations. With the most recent legislation, this provision covers tax years 2020 and 2021, and taxpayers do not need to itemize deductions.

Couples filing jointly may claim up to $600 in deductions. There is a 50% penalty for overstatements on this above-the-line deduction. The extension from 10% to 25% of taxable income for corporate donations remains in place through 2021.

Again, taxpayers will be able to use this incentive for 2020 and 2021.

Expanded Employee Retention Tax Credit

Employers can take a tax credit against employment taxes. This includes eligible employers who received a Paycheck Protection Program loan, but only for workers not paid for by those funds.

Provisions in earlier COVID-relief bills that make nonprofits eligible for SBA Economic Injury Disaster Loans and Emergency Economic Injury Disaster Grants remain in place.

Farmers and ranchers that employ fewer than 300 people are also eligible to apply for these loans, which are actually grants — as they do not need to be repaid.

The COVID-19 Emergency EIDL Grant is an advance of up to $10,000 to small business owners (including nonprofits) with no more than 500 employees in all U.S. states and territories and Washington, D.C. The new bill provides an additional $15 billion for such grants.

Organizations that experienced a 30% decline in revenue over an eight-week period and those located in low-income areas will be prioritized. Employers that already received an EIDL Grant for less than $10,000 are eligible to apply for a second loan, but the combined loan amount cannot exceed $10,000.

You can access information about applying for an Emergency EIDL Grant here.

Economic Injury Disaster Loan applications are available through the SBA website.

Please note: Beware COVID-19 scams

If you receive calls, emails or other communications claiming to be from the Treasury Department and offering COVID-19-related grants or stimulus payments in exchange for personal financial information, or an advance fee, or charge of any kind, including the purchase of gift cards, please do not respond. These are scams. Please contact the FBI at www.ic3.gov  so that the scammers can be tracked and stopped.

Fraud involving payment of federal taxes should be reported to the Treasury Inspector General for Tax Administration.

*The Learning Center is a service offered to Alliance-member land trusts, affiliates and individual supporters at the $500 level and above.