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Paycheck Protection Plan Reopens

Posted: January 13 2021 at 08:27 AM
Author: Lonnie Chafin, NIC Treasurer

As of January 11, 2021, the U.S. Small Business Administration (SBA) has reopened the Paycheck Protection Program (PPP). Churches who did not apply for PPP in 2020 can apply now for a First Draw PPP Loan and secure 10 weeks of many operating expenses. In 2020, the SBA extended more than $4.2 million to 130 local NIC churches.

Local churches who received a First Draw PPP loan in 2020 may apply for a Second Draw PPP loan if they will or have used the full amount for authorized uses, have no more than 300 employees and can demonstrate at least 25% reduction in gross receipts between comparable quarters in 2019 and 2020. “SBA rules about revenue recognition may complicate the ability of local churches to comply with this standard, whether they use cash or accrual accounting,” noted Lonnie Chafin, NIC Treasurer. “However, we encourage churches who experienced significant reductions in giving or in other income sources (such as rental income) to apply for a Second Draw PPP loan.”

Chafin said that the changes to the program include an even easier means for loans less than $150,000 to be eligible for forgiveness. If your church received a PPP loan, now is the time to request forgiveness.  Click here to view the terms.

Chafin added that bankers predict that the funds will last for only a three-week period and encourages churches to act quickly.

“We encourage finance committees to review their quarterly revenue in 2020 and compare it to 2019 quarterly revenue,” Chafin said. “The Conference is researching the program and eligibility requirements as quickly as possible. We are ready to provide assistance to churches in evaluating and preparing a Second Draw application, but we think there will be few churches who will qualify with the stringent income requirements.”

If you believe your church might be eligible for the program, please contact Lonnie Chafin for assistance at


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