Cornyn Urges SBA to Make 501(c)3 Nonprofit Educational Institutions Eligible for Paycheck Protection Program


In: All News   Posted 05/18/2020
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WASHINGTON— Today U.S. Senator John Cornyn (R-TX) sent a letter to Small Business Administration (SBA) Administrator Jovita Carranza urging her to make 501(c)3 nonprofit educational institutions eligible for the Paycheck Protection Program (PPP) under the CARES Act. 

“Many nonprofit colleges and culinary schools rely on annual revenue from affiliated small businesses: restaurants, event venues, and other hospitality-oriented businesses,” they wrote.  “The relationship between business and academia at culinary institutions, for example, is an innovative system that provides students with real-world experience to prepare them for their chosen profession and is critical to the institutions’ ability to maintain affordable tuition rates.  In addition, the economic and tourism impact these schools have is substantial.”

Joining Sen. Cornyn on the letter were U.S. Senators Diane Feinstein (D-CA), Kirsten Gillibrand (D-NY), and Kamala Harris (D-CA).

Sen. Cornyn launched a series of statewide outreach calls with small businesses, healthcare workers, nonprofits, local municipalities, agricultural groups, trade associations, and other Texans on March 6.  His website has additional resources for Texans during the coronavirus outbreak here.

You can read the full letter here, and text is below.

May 18, 2020

The Honorable Jovita Carranza
Administrator
Small Business Administration
Suite 7000
409 Third Street, SW
Washington, DC 20416

Dear Administrator Carranza:

We write to ask that you revise your current guidance to make 501(c)3 nonprofit educational institutions eligible for financial assistance programs, such as the Paycheck Protection Program, during the COVID-19 pandemic.   

Many nonprofit colleges and culinary schools rely on annual revenue from affiliated small businesses: restaurants, event venues, and other hospitality-oriented businesses.  The relationship between business and academia at culinary institutions, for example, is an innovative system that provides students with real-world experience to prepare them for their chosen profession and is critical to the institutions’ ability to maintain affordable tuition rates.  In addition, the economic and tourism impact these schools have is substantial. 

We recognize that our economy will take time to recover, and our restaurants and hospitality industries will continue to be impacted.  However, the current structure of federal assistance programs limits schools’ ability to properly address business concerns under its non-profit designation. As such, an exception to the guidance released by your administration is essential to keeping these culinary institutions in business.

Thank you for your consideration of our request, and we look forward to your response.              

Sincerely,

/s/