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Nonprofits Now Eligible for Paycheck Protection Program Under The Consolidated Appropriations Act, 2021

December 30, 2020

By: Jackie Bozzuto & Ferran Arimon

The Consolidated Appropriations Act, 2021 (the “Act”), which was recently signed into law by President Donald Trump, provides, that for the first time, Section 501(c)(6) not-for-profit organizations will be eligible to receive PPP loans. Such organizations are not organized for profit and no part of the net earnings benefit any private individual.

To be eligible, such organizations must meet the following criteria:

  • The organization must not employ more than 300 employees;
  • The organization does not receive more than 15% of receipts from lobbying;
  • The lobbying activities do not comprise more than 15% of total activities; and
  • The cost of lobbying activities of the organization did not exceed $1,000,000 during the most recent tax year that ended prior to February 15, 2020.   

In addition to first-time eligibility for Section 501(c)(6) not-for-profit organizations, destination marketing organizations and housing cooperatives have also been made eligible.

Please note that guidance and regulations related to this second round of PPP have not yet been issued. The SBA is required to provide these regulations within 10 days of the enactment of the Act. We will continue to provide relevant updates as such guidance and regulations become available.

For up-to-date news please visit our Coronavirus (COVID-19) Resource Center.


This article is informational only. You should consult an attorney before acting or failing to act. The law may change rapidly and no warranty is given. LOWNDES DISCLAIMS ALL IMPLIED WARRANTIES AND WITHOUT LIMITATION, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. ALL ARTICLES ARE PROVIDED AS IS AND WITH ALL FAULTS. Consult a Lowndes attorney if you wish to establish an attorney/client relationship.
Jacqueline

Jackie Bozzuto has extensive experience mapping out strategies for real estate development and finance for the hospitality industry and beyond. She has also assisted clients with acquiring portfolios out of bankruptcy estates, as well as multi-site and multi-state purchases and sales.


Goal-oriented, organized, gifted relationship-builder and connector of people. These skills, along with decades of experience in the restaurant industry, have earned Jackie the reputation of “trusted advisor” to clients.

Born and raised around her family’s commercial real estate, investment and management business in St. Thomas, Virgin Islands and later in south Florida, Jackie was exposed early on to running businesses smoothly. Her family operated restaurants for a number of years as well, and she transferred her love of all things culinary to advising clients on the operational side of the business. She helps clients, both locally and nationally, streamline their processes, develop acquisition programs and expand their portfolios.

Jackie’s experience mapping out strategies for real estate development and finance, including commercial leasing, extends beyond the hospitality industry. She has also represented clients acquiring hundred-million-dollar portfolios out of bankruptcy estates, as well as other multi-site and multi-state purchases and sales. In addition, she assists foreign entities and individuals with setting up optimal tax structures for ownership of residential and commercial property in the U.S.

Clients appreciate Jackie’s attention to detail, respect for their budgets, and commitment to getting the job done. They are also amazed by her ability to bring people together who will benefit from networking with each other. She is well connected in the Central Florida community, currently serving on the Governmental Affairs Committee of CFHLA (Central Florida Hotel & Lodging Association). A frequent speaker at high-profile hospitality industry events, she is the immediate past president of CREW-Orlando (Commercial Real Estate Women) and serves on numerous other boards and committees as well.

Beyond her service to clients and community, Jackie enjoys cooking, traveling, and race car driving.

Jackie has worked with many repeat clients, including:

Applebee’s
Bonefish Grill
Brass Tap
Burger King
Carrabba’s Italian Grill
Fleming’s Prime Steak House & Wine Bar
IHOP
Jeremiah’s Italian Ice
Megastron Development
Outback Steakhouse
Roy’s
Seymour International
Wendy’s
Wing Stop

Ferran

Ferran Arimon is an attorney in the firm’s Commercial Real Estate Group. He focuses his practice on commercial real estate transactions, including the acquisition, disposition, financing, development and leasing of various property types, as well as construction financings and re-financings. His practice also includes corporate and securities law.

Ferran regularly advises buyers, sellers, developers, landlords and tenants in real estate transactions related to multifamily developments, industrial properties, office buildings, shopping centers, restaurants, hotels, retirement communities and vacant land. He also assists clients with leasing contracts, title review and survey analysis, contract negotiation for purchase and sale, due diligence, negotiation of transfer documents and finalizing of transaction closings.

Additionally, Ferran has experience in corporate and securities law, mergers and acquisitions, and tax law. He has worked with clients to structure financing transactions in compliance with federal and state securities laws, having represented both public and private companies in mergers, acquisitions, capital raising, and corporate governance matters. He has also counseled clients on a broad range of tax issues and business planning issues from entity selection and formation to dissolutions.

Prior to law school, Ferran was an analyst at real estate investment management company in Miami. His role centered around underwriting, valuing, and identifying acquisition opportunities for distressed or value-add commercial and residential real estate acquired through joint ventures, direct Investments and non-performing loans portfolios.

Fluent in Spanish, Ferran regularly writes articles on a variety of emerging legal issues.

Ferran earned his law degree from the University of Florida Levin College of Law and his MBA from the University of Florida Warrington College of Business. Prior to law school, he received his undergraduate degree from Babson College, where he majored in finance and was a member of the men’s tennis team.

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