(The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts.)
(THE CONVERSATION) More than 60% of nonprofit social services, arts and culture organizations obtained Paycheck Protection Program loans during the first nine months of the COVID-19 pandemic. These very low-interest loans for small businesses and nonprofits turn into grants that don’t need to be paid back as long as borrowers meet certain conditions, such as using at least 60% of the money to pay their employees.
Even so, almost 50% of nonprofits providing social services, such as food banks and shelters for people experiencing homelessness, still had to scale back their work and cut staff because of inadequate funding. Almost 80% of arts and culture groups, including everything from big museums to small schools that teach children to speak Mongolian, faced the same problems. Also, about 15% of the nonprofits eligible for PPP loans either didn’t apply or were denied loans they sought.
These are among our latest findings from an ongoing national survey of nonprofits we’re conducting. As scholars of nonprofits, we aim to understand the impact of COVID-19 on the sector as a whole, and get a stronger understanding of how these organizations can become more resilient, better run and more effective in serving their communities.
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