The Paycheck Protection Program provides small businesses, non-profits and churches with funds to pay up to eight weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities.
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Scott Brewer, conference treasurer and director of administrative services, hosted the first of a series of Financial Fridays webinars April 3, focusing on mission shares and the Paycheck Protection Program. View the video below.
The Great Plains Conference recommends that every church get the permission of its Finance Committee and Church Council (or equivalent) before formally taking on this loan. Here are sample resolutions to use when taking those formal actions to accept your loan:
GCFA has provided Certificate of Affiliation Guidance that you can find here.
Get your Group Ruling Letter from GCFA here.
Note: In earlier situations where churches have sought grants from companies and other organizations, some have found getting themselves included on the listings at Guidestar has been helpful. Within the GCFA Group Ruling application, there is a checkbox to include the church on GuideStar. Once you get the application completed, it will take several weeks for it to appear on the GuideStar website.
Verification of the group ruling by IRS in 2013 IRS 2013 Group Ruling Verification Letter.pdf
Find a copy of the bipartisan joint letter from Congress to the US Department of the Treasurer stating that the intent of congress was that churches should not be denied access to PPP loans because they have not filed Form 1023 for recognition of exemption under Internal Revenue Code section 501(c)(3) here.