Associated Students UCLA (ASUCLA) is not a typical student government. It is a non-profit that runs a large business: campus stores, the student union at Ackerman, food outlets, licensing of products carrying the UCLA name, and services such as a pharmacy. When students were sent home in March 2020, most of that revenue disappeared almost overnight.
The losses
According to Daily Bruin reporting in July 2020, most ASUCLA services were limited or paused from 20 March 2020. By May it had a year-to-date net loss of $5.7 million, and it projected a year-to-date deficit of $17.6 million by the end of July, about $14 million worse than the previous year.
The loan
ASUCLA received a $4.7 million loan under the federal Paycheck Protection Program (PPP), run by the Small Business Administration. The organisation said the money would help it keep about 500 jobs. Under the rules then in force, a PPP loan could be forgiven if enough of it was spent on payroll; see our explainer on PPP forgiveness flexibility.
Non-profits with 501(c)(3) status were eligible for PPP loans, which is how a campus organisation could qualify alongside small businesses.
The cuts
ASUCLA also reduced spending on inventory, delayed debt payments owed to UCLA for the student union and other projects, and planned cuts to programming funds that many student organisations relied on. Student advocates raised concerns about work-study jobs and grants.
The wider picture
University auxiliaries across the US, from bookstores to housing and athletics, faced similar shocks in 2020, and many had to draw on federal relief, reserves or their parent universities. The episode showed how much campus life depends on businesses that students rarely think about until they close.
Sources
General information about the law as it stood when this page was updated, not financial, tax or legal advice. Rules and limits change; check the official source or a qualified adviser before acting.