Important Opportunity for Local Churches: SBA Paycheck Protection Program
posted on April 01
We urge you to closely read this article, which was published by Forbes magazine: $349 Billion In Forgivable Paycheck Protection Loans For Nonprofits. Here’s How To Apply
- "The $2 trillion Coronavirus Aid, Relief and Economic Recovery (CARES) Act includes $349 billion in forgivable loans for nonprofits and small businesses. The main purpose is to help organizations keep their employees on the payroll between now and the end of June 2020. Hence, the name of the program: Paycheck Protection Program (PPP). The application window opens on Friday, April 3."
Also, Wespath Benefits & Investments released a summary document on the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748) (“CARES” or “Act”), looking at the potential impact for the United Methodist Church. It includes a detailed description of the Paycheck Protection Program beginning on page 11.
Please take a close look at the benefits of the Paycheck Protection Plan that are potentially available to your local church, as well as the important timeline suggestions in the Forbes article. A Charge Conference is involved to approve borrowing, but churches can begin to do the groundwork immediately. A good start would be talking with your church's bank.
Our office can help you with the Charge Conference scheduling, and we have some updated guidelines on Charge Conference procedures during this time of physical distancing.
We urge you to take a look at this Paycheck Protection Loan Program, and to begin work on this process if it would benefit your congregation. It will be of great help to nonprofits and small businesses, and we urge you to consider it for your ministries.
Below are links to information released March 31st by the Small Business Administration:
- Small Business Adminstration (SBA) Press Release - Press Release about the Paycheck Protection Program - Updated 3/31
- SBA Website about the Paycheck Protection Plan - Updated 3/31
- SBA Resource Guide - North Carolina Edition - Includes list of SBA Lenders in North Carolina beginning on page 29. The first section is a list by city/town, and following that a list of state-wide lenders beginning on page 31.
- The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed.
- Lenders may begin processing loan applications as soon as April 3, 2020.
- Loan Terms & Conditions
- Eligible businesses: All small businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries.
- Maximum loan amount up to $10 million.
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs).
- All loans under this program will have the following identical features:
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
- Payroll Protection Program Application
Do not hesitate to reach out to us if you are interested in proceeding toward making application for this program. We can work with you to schedule a charge conference and provide you with the guidelines for noticing and holding such a charge conference via Zoom.
Your District Office Staff
Be sure to regularly check the Western North Carolina Conference website COVID-19 Resources Page for continuing updates and information. Here are some of the articles / resources posted in the last two days:
- Update from Bishop Leeland and the Cabinet Regarding "Drive-In Worship" - March 31, 2020
- WNCC Financial Responses to COVID-19 - March 30, 2020
- A three-month waiver of the local church component of pension and health benefit premiums.
- The establishment of the WNC Connexion Fund to help our WNC congregations support clergy and their families as they continue to lead our ministries.
- Interpretation of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
- Committee on Relief Collects 10,000 Masks for CaroMont Health in Gastonia - March 30, 2020 - Volunteers worked to retrieve 10,000 masks (mostly n95) from UMCOR cleaning kits and from Mission Response Center donations this past week!
- And LOTS more!