Sheet Metal & Air Conditioning Contractors’ National Association

SMACNA Urges House to Pass H.R. 6697, Making all 501(c) Organizations Eligible for SBA Loans

In a May 11, 2020 letter, SMACNA urged the House to recognize the important role of nonprofit organizations, especially business trade associations and the vital work they perform.  While grateful Congress included funds through expanded Small Business Administration (SBA) loans to small businesses and Internal Revenue Code Section (Section) 501(c)(3) nonprofit organizations, among others, SMACNA is deeply concerned that the definitions put forth in this critical legislation do not expressly include other nonprofit Section 501(c) organizations. This oversight would be corrected if Congress passes H.R. 6697 to include Section 501(c)(6) organizations such as trade, professional and membership associations. To that end, SMACNA has asked Congress and the federal government to quickly enact H.R. 6697 which would explicitly recognize all 501(c) organizations within the definition of “nonprofit organization” for SBA loan eligibility in stimulus initiatives approved during this pandemic. These SBA loans may be necessary to allow trade and standards setting associations to continue to provide essential membership services. Without this option of SBA loans and financial support, many state and national associations will fail.

The construction industry builds and maintains critical infrastructure, including vital energy and communication systems, roads and bridges, and social infrastructure, including police, fire and health care facilities. The leading associations and other Section 501(c) organizations play an important role to train America’s workforce, create industry and professional standards and disseminate essential information and resources to people during times of crisis. These organizations are already needed to help coordinate federal resources, and they require staff to fulfill this duty. Without support, however, and due to unprecedented financial loss from event cancellations, associations will be unable to meet this critical obligation. 

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