
Steve Mumford, University of New Orleans
The COVID-19 pandemic was devastating to nonprofits. One in eight nonprofit jobs were lost in the pandemic’s initial months. At the same time, many nonprofits were needed to play an essential role supporting community resilience, which demanded more staff and resources.
Governments worldwide stepped in to help. In the United States, the federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March 2020, providing $2.2 trillion of disaster relief, the largest relief package in history at the time. It created the Paycheck Protection Program (PPP), guaranteeing forgivable stopgap loans to sustain small businesses and nonprofits. Organizations that employed between one and 500 paid staff members could borrow funds for wages and have them forgiven if they maintained employees and pay rates. PPP had two primary goals: stabilize revenues and maintain employee hours.
Although the program was designed with businesses in mind, many nonprofits seized the opportunity to obtain PPP loans. What ultimately came of these emergency relief funds, and to what extent did they support the sector’s short-term financial sustainability as intended? Using survey data collected from nonprofits in New Orleans, Louisiana, at the start of the pandemic and one year later, matched to public PPP data, my colleagues Nicole Hutton, Stephanie Riegel, and I attempted to find out in our new NVSQ article.
Continue reading “What Did Nonprofits Do with Pandemic Relief Funds?”