State Will Limit Coronavirus Relief To Nonprofits

State Will Limit Coronavirus Relief To Nonprofits

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Gian Carl Casa, president and CEO of CT Community Nonprofit Alliance, said that for the organizations who received PPP loans, there were limits on what the funds could pay for.

“They do not cover the cost of personal protective equipment (PPE), for example. Additional state funds were to cover these and other extraordinary costs. While some of the PPP loans may be forgiven, the federal rules have changed repeatedly and nonprofits may need to pay them back,” Casa said.

He said nonprofits are still on the front lines of providing mental health care, substance abuse treatment, and residential services for people with developmental disabilities.

“Our members have struggled to find PPE to protect staff and clients, revamped technology to provide telehealth services, reconfigured offices to allow for safe social distancing, purchased additional cleaning supplies and increased costs for food — all unbudgeted costs that are not covered by PPP or current state funding,” Casa said.

He said this policy will likely mean there will be fewer nonprofits and service providers in the future.

“If nonprofits are arbitrarily denied federal and state support during this pandemic, regardless of revenue losses or other increased costs due to COVID because they got federal loans to pay their employees, they will not be able to make ends meet,” Casa said. “Nonprofits that provide vital human services will close their doors and the state will lose its safety net.”

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