Month: December 2020

The massive stimulus package approved by Congress late yesterday includes long awaited relief for many 501(c)(6) organizations. The package makes 501(c)(6) organizations eligible for loans under the Paycheck Protection Program (PPP) if they meet the following requirements:

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

Therefore, many small to mid-size organizations will be able to access the $275 billion in additional PPP funding provided under this relief package.

While some associations may have already applied for an Economic Injury Disaster Loan (EIDL), under the current regulations they can still obtain a forgivable PPP loan.

As we learn more about the relief package in the coming days, association leadership can start taking steps to determine whether a PPP loan is right for their organization. As part of this process, they should contact their banking institution to determine when and how they can apply for a PPP loan.

We will continue to provide you with ongoing updates regarding how this new relief package impacts nonprofit organizations. In the meantime, please don’t hesitate to contact a member of GKG Law’s Trade & Professional Associations team with any specific questions.

On December 14, 2020, the U.S. Department of State imposed broad sanctions on Turkey’s Presidency of Defense Industries (also known as SSB) pursuant to Sections 231 and 235 of the Countering America’s Adversaries Through Sanctions Act (CAATSA), including a prohibition on U.S. government agencies from providing U.S. export licenses and authorizations for transfers of goods and technology to SSB. This restriction was implemented by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC).

Moving forward, BIS and DDTC will not issue any licenses or authorizations for the export or re-export of items to SSB. DDTC has stated that current, valid, non-exhausted licenses and authorizations are not affected by this change in policy. Similarly, there is no indication that BIS will revoke current and valid export licenses. Accordingly, absent further action from BIS or DDTC, items moving under existing BIS or DDTC licenses are not affected by the SSB sanctions.

We are seeking guidance from the U.S. government as to whether exempt activity, such as Foreign Military Sales transactions, are affected by these sanctions. We will send an update when we hear back from the U.S. government on this issue.

Importantly, these sanctions target SSB, Turkey’s primary defense procurement entity, and some of its officers. This is not a country-wide embargo on Turkey or a broader restriction against business with the Turkish government. These new restrictions are only triggered to the extent that SSB or one of its officers is involved with a shipment.

We hope this is helpful, but please let us know if you have any questions.