SBA PPP Update
SBA PPP Update
Dear Treasurers and Finance Chairs (cc: to Pastors),
The situation surrounding the Paycheck Protection Program (PPP) loans offered by the Small Business Administration (SBA) continues to evolve on a daily basis.
Here are some updates:
- We have created a sample form as an example of how churches should complete the application. Please see the document titled "SamplePPPApplication" at the bottom of this e-mail.
- It is best if the church applies through a bank where they already have an account if it’s an approved SBA lender. Many of you have communicated difficulties being able to file loan applications with your banks. They appear to be inundated with inquiries and many are still building the systems needed to process such a large volume of applications. So if you haven't been able to file yet, don't give up! The process will hopefully become smoother over the coming days / weeks.
- At the bottom of this e-mail are two sample resolutions that the church's Finance Committee and Church Council should adopt authorizing the church's application. They are titled "FinanceCommResolution" and "ChurchCouncilResollution".
- The SBA has clarified that churches are eligible to receive this funding. Please see the document titled "SBAFaithBasedFAQ" at the bottom of this e-mail for their statement on church eligibility for this program.
- There are many details to this program that can't be summarized in an e-mail. Everything you need to know to apply, including the latest application form, is contained on the SBA website. Please click here to access the site.
- There is an excellent resource available from the UMC & the U.S. Chamber of Commerce to assist you in understanding the program and the process to be followed. Please see the document titled "USCOCGuidance" at the bottom of this e-mail.
- There is a provision that at least 75% of the PPP loan must be used for payroll costs. This is important for churches to consider that are intending to use the funds for mortgage interest, rent, and utilities.
- If a church’s only employee is the pastor, the church might not have 941 or others payroll forms to present with your loan application. In these cases you should provide the letter at the bottom of this e-mail titled "IRSForm941" confirming that you are not required to file such forms.