Paycheck Protection Plan Reopens
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 Dra…
Update:
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.”
The CARES Act is lengthy legislation intended to “provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.” Among other things, it expands unemployment insurance eligibility and establishes loans, credits, and payment delays to help employers meet payroll and other obligations.
The application process for the Paycheck Protection Program (PPP) re-opened April 27. Fill out your application ASAP, then submit it to and have a conversation with a bank that is an SBA-certified lender. View the Paycheck Protection Program overview.
April 6 Zoom Meeting with Lonnie Chafin
►PPP Forgiveness Loan Webinar (Long Form) with Lonnie Chafin 7/23/20
►PPP Forgiveness Loan Webinar (Short Form) with Lonnie Chafin 7/22/20
More Resources:
-
Denominational group ruling for the UMC for you in case you need to submit it with your application, or you can get a personalized letter for your church.
-
Click here for an FAQ from the UM General Board on Finance and Administration.
-
Click here for guidance for UM Churches on the PPP application form.
-
Click here for more information from NIC Treasurer Lonnie Chafin.
-
Read more from ChurchLaw & Tax