On April 24, 2020, George Constantine was quoted in CEO Update on organizations seeking pandemic relief funds. Many thousands of hard-hit trade groups, chambers of commerce, and professional societies incorporated under section 501(c)(6) of the tax code—and therefore able to engage in political lobbying—are not eligible for the $349 billion Congress approved March 27 for the new federal Paycheck Protection.
According to the article, 501(c)(6)s are eligible for the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program, which doles out loans of up to $2 million per business. These can include a $10,000 emergency cash advance that is supposed to arrive within three days of applying for the loan.
Constantine said some groups are confused by a box to check on the EIDL application indicating they are not in the business of lobbying. According to government regulations, associations are ineligible for the loan if they are primarily engaged in lobbying or political activity, Constantine said. But they may be eligible if they spend less than 50% of revenue on lobbying