Bloomberg News reports that the Americans for Tax Reform Foundation led by “anti-tax activist” Grover Norquist accepted COVID-19 small business relief money from the federal government.

• According to Small Business Administration data released on Monday, the 501(c)(3) nonprofit foundation took out a Payment Protection Program loan valued at between $150,000 and $350,000.
• Norquist is known for pressing Republican lawmakers to take pledges that they will not increase net taxes.
• The foundation has close ties to Americans for Tax Reform, a 501(c)(4) taxpayer advocacy group that is able to participate in political activities and federal lobbying.
• A statement from the foundation describes it and Americans for Tax Reform as “legally and financially separate,” though they share leadership, an office building proximate to the White House, and a phone number.
• Some House lawmakers were concerned that Payment Protection Program funds could end up in the hands of political lobbyists.
• The Foundation received approval for its loan in late April, and the loan is intended to provide paychecks to thirty-three employees.

At its website, Americans for Tax Reform describes the difference between itself and the Foundation as follows:

[Americans for Tax Reform] is a nonprofit, 501(c)(4) taxpayer advocacy group. Contributions to Americans for Tax Reform are not tax deductible. The Americans for Tax Reform Foundation is a 501c(3) research and educational organization. All contributions to the Americans for Tax Reform Foundation are tax-deductible to the extent provided for in federal law.

Of the Payment Protection Program, Bloomberg explains,

The program was designed to provide small businesses with loans of as much as $10 million, based on a company’s average monthly payroll before the pandemic. The loans can become grants if borrowers use the proceeds mostly to pay workers, with some spending allowed for rent and overhead costs.

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