COVID-19 Resources for Land Trusts

Update as of January 10

As our country continues to navigate the coronavirus pandemic and the impacts on the land trust community, the Land Trust Alliance is 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.

On December 27, the President signed into law the Omnibus Appropriations and Emergency Coronavirus Relief Act. The bill funds the federal government through September 30, 2021 and provides additional economic relief for individuals, businesses and nonprofits. It also extends charitable giving incentives established in the Coronavirus Aid, Relief and Economic Security Act which was signed into law last March.

We also have developed a package of policy recommendations that we are using to educate decision makers on programs that support land conservation, contribute to our country’s economy and create jobs. Land is inarguably a part of our nation’s response to the COVID-19 pandemic. You can find our COVID policy recommendations here.

In addition to reviewing these resources here, you should visit the Alliance Learning Center,* which includes the Ask the Expert Forum. There, Alliance staff and land trusts from across the nation are posting resources and strategies to address the crisis.

You should also know that the Alliance continues to work part of a national coalition of nonprofits to ensure future emergency response bills provide additional support for our community.

We have updated this site to provide information the resources available for our community

Paycheck Protection Program loan application process opens Monday, January 11.  Additional $284 Billion for first or second PPP loans available.

The December Omnibus bill includes $284 billion for a second round of forgivable loans to small businesses and nonprofits through the Paycheck Protection Program. We anticipate these funds will be allocated quickly and 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. The banks are the ones who will take applications; SBA will pay them for handling the loans/grants. 

If you got a PPP loan last year, you can now apply for another.  If you didn't, you can apply too — under new, easier rules.

The Small Business Administration published two Interim Final Rules for this round of funding on January 8.  For those seeking a second loan, you can find the IFR here. If you are pursuing your first PPP loan, here is a link to that IFR

The bill makes the loans available to employers who have fewer than 300 employees and can show that their gross receipts in any quarter of 2020 were at least 25% less than their gross receipts (see Internal Revenue Code Section 6033(link is external) 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 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 1-page application in which you attest that you have used the loan as required.  Larger loans will require a bit more paperwork and the possibility of audit.

The bill sets aside $25 billion for second draw loans to entities with 10 or less employees or in amounts of $250,000 or less in low or moderate-income communities.

Extended Provisions to Encourage Charitable Donations

The December bill also renews the provisions in the 2020 CARES Act to encourage Americans to contribute to charitable organizations by allowing taxpayers to claim up to $300 for cash donations to charitable organizations in 2021 on their federal income tax return, even if they do not itemize deductions.

Couples filing jointly may claim up to $600 in deductions. The bill adds a 50% penalty for overstatements on this above-the-line deduction. The bill also extends the increase from 10% to 25% of taxable income for corporate donations through 2021.

Taxpayers will now be able to use this incentive for 2020 and 2021.

Expanded Employee Retention Tax Credit (ERTC)

The December bill extends the original CARES Act provisions that allows employers to take a tax credit against employment taxes. In addition, it now makes eligible employers who received a Paycheck Protection Program loan, but only for workers not paid for by those funds.

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 $20 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 also eligible to apply for a second loan but the combined loan amount cannot exceed $10,000Additional $20 billion for Economic Injury Disaster Loans

The CARES Act made nonprofits eligible for SBA Economic Injury Disaster Loans for the first time ever. The Paycheck Protection Program and Healthcare Enhancement Act also made farmers and ranchers that employ fewer than 300 people eligible to apply for these "loans," which are actually grants — 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 $20 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 also 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.

The CARES Act made nonprofits eligible for SBA Economic Injury Disaster Loans for the first time ever. The Paycheck Protection Program and Healthcare Enhancement Act also made farmers and ranchers that employ fewer than 300 people eligible to apply for these "loans," which are actually grants — 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 $20 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 also 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.

Enhanced Medical Leave Updates

Recent changes to federal law have significantly altered medical leave benefits for many employees. It’s important that land trusts account for changes that apply to them and their employees.

On March 18, the president signed H.R. 6201, the "Families First Coronavirus Relief Act," into law. The law, among other things, requires paid sick leave for employees and expands the Family and Medical Leave Act. Additionally, the president signed H.R. 748, the “Coronavirus Aid, Relief, and Economic Security (CARES) Act,” into law on March 27, which lowered the amount that employers must pay as required by H.R. 6201. The provisions in these bills may affect you and your employees.

H.R. 6201 requires that all employers of fewer than 500 employees provide paid sick leave and family health leave to workers and families directly impacted by coronavirus. H.R. 748 lowered required payment amounts to employees. Employees who have been quarantined or are showing symptoms of coronavirus must be paid their full wages – up to a maximum of $511 a day and an aggregate of $5,110. Those who must miss work to take care of family members, including school-age children, must be paid no more than $200 per day or $2,000 aggregate.

These costs will be covered by the Treasury, through refundable tax credits that can be used against employment taxes (Social Security and Medicare taxes). Any unused credits will be refunded. You can apply for these funds as you need them by filing new IRS Form 7200 – you do not need to wait to file your quarterly reports. You can find instructions for IRS Form 7200 here and a link to the Form here. Details will be coming on how refunds will become available. Note that if an employer continues an employee’s health insurance coverage while the employee is on paid sick leave, the credit will also include the employer’s expense for this.

On April 29, the IRS issued additional guidance for filing IRS Form 7200 to help employers’ common mistakes they were seeing. You can find additional information here.

The December legislation extended these provisions through March 31, 2021.  For 2021, the credit goes from 50% of wages to 75%, and is available to any employer of 500 or fewer employees whose gross receipts were reduced by 20% (down from 50% in the prior bill).  Creditable wages are capped at $10,000 per quarter for 2021.

The Secretary of Labor has the power to exempt businesses of fewer than 50 employees if complying would force them out of business

There are additional changes to employee benefits. The bills require employers to provide paid leave under FMLA of 1993 to employees who fit the specific definitions for sick leave. That pay is limited to $200 per day and an aggregate of $10,000. (FMLA provides for up to 60 days of leave, and any leave taken under these emergency provisions counts toward that total.)

FMLA is further amended by defining an eligible employee as an employee who has been employed for at least 30 calendar days by the employer. It also provides for rehired employees which include employees laid off by the employer not earlier than March 1, 2020, who had previously worked for the employer for not less than 30 of the last 60 calendar days prior to the employees lay off and was rehired by the employer.

Similar to the above, the secretary of Labor has the power to exempt businesses of fewer than 25 employees if complying would force them out of business. And as with the sick leave, an employer’s cost of providing this leave pay will be covered by a refundable credit against employment taxes.

For more detailed guidance on this topic, visit the Department of Labor 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.