Should Private and Religious Schools Receive COVID Funds Meant to Save Small Businesses?
Last spring, when the pandemic began crippling the economy, Congress passed the $2.2 trillion CARES Act (Coronavirus Aid, Relief, and Economic Security Act). It was a rare moment of bipartisan action. Included in the act was the Paycheck Protection Program, which offered $660 billion to help small businesses weather an economic catastrophe in which many would be forced to close their doors and lay off their employees. The PPP would enable these businesses to pay their employees and survive the pandemic.
However, in the inevitable lobbying, someone added nonprofits to the list of organizations eligible to receive government aid under the PPP.
The PPP grants are called loans, but they are forgivable if used for payroll, rent, heating, and other expenses. It’s unlikely that any will be repaid.
Public schools were not eligible to apply for PPP, because they received a fund of $13.2 billion, which they were required to share with charter schools. Charter schools, however, were eligible to apply for PPP as “nonprofits,” meaning they could double dip into both funds. Over 1,200 charter schools got very generous CONTINUE READING: Should Private and Religious Schools Receive COVID Funds Meant to Save Small Businesses? | Diane Ravitch's blog
