COVID-19 Stimulus Funding: What K-12 Schools Need to Know
Please note: This blog is current to the date of its publication, Friday, March 26. For additional updates or assistance navigating these uncertain times, please contact us or visit our SST COVID-19 resource page.
Schools have been on the frontlines of the COVID-19 pandemic, having to pivot and shift almost every aspect of operations, including finance. While the initial Coronavirus Aid, Relief and Economic Security (CARES) Act provided significant relief, guidance is fluid and ever-changing, and additional stimulus funding has been approved in recent weeks. These funding opportunities can be hard to interpret and apply to real-life circumstances.
While First and Second Draw Paycheck Protection Program (PPP) loans have been in the spotlight, there are additional resources available for private K-12 schools. Below are a few tips and resources these schools can use to navigate additional aspects of the CARES Act.
Learn more about SST’s K-12 industry expertise.
- More organizations are eligible for Employee Retention Credits (ERCs) than one might think, and eligibility and available funding differ significantly between 2020 ERCs and 2021 ERCs:
- Schools can receive PPP funding and ERCs, if eligible
- Schools can receive ERCs if they meet one of the following conditions:
- Experienced a significant decline in gross receipts
- Had operations that were fully or partially suspended
- There are a variety of ways in which a school is considered subject to a partial shutdown, including limited hours or government mandates
- Schools can assess 2021 ERC eligibility today using a prior calendar quarter test when trying to determine if a significant decline in gross receipts occurred
Click here to download an overview of current ERC guidelines.
- Teachers should know that eligible educators may deduct personal protective equipment (PPE) expenses
- Donors should know that the CARES Act increased charitable contribution limits for both individuals and corporations
- The Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, 2021, and The American Rescue Plan Act, 2021, together provide $2.75 billion for the Emergency Assistance for Non-Public Schools (EANS) program, which is part of the Governor’s Emergency Education Relief Fund. The Department of Education provides updates via their website and has issued clarifying FAQs for certain topics, including:
- Program purpose and awards to governors
- Administration of the program and responsibilities
- Non-public school eligibility, application and identification for services or assistance
- Services or assistance for non-public schools
- Public control of funds
- Fiscal requirements
- Reporting requirements and timeline
While COVID-19 financial assistance programs are nuanced and seemingly complex, the experts at SST are equipped and available to help. To learn more about how SST can guide your K-12 school through these various assistance programs, contact SST Partner Emily Cook today.
Special thanks to SST Partner Emily Cook for providing the content for this post.