EDITOR’S NOTE: Some of the information in this post has been deprecated by new details available here. This post is saved for both historical records and additional, relevant details.
On March 30, 2020, the CARES Act was passed by Congress to address the financial impact of the spread of the novel coronavirus and the mitigation efforts that have followed. You might have heard about two important provisions of the Act: The SBA Disaster Relief and the Paycheck Protection Program. While churches are not eligible for SBA Disaster Relief, you are eligible to take advantage of the Paycheck Protection Program.
If your congregation is intending to apply for the Paycheck Protection Program, we recommend that you apply immediately to ensure that your ministry continues to have available cash to support your staff and fixed expenses. Here are a few resources regarding what the Paycheck Protection Program is and the steps to apply…
Paycheck Protection Program – General Information
- Payroll Protection Program Website
- Checklist For Churches – CARES Acts
- Complete Bill Text
- Fact Sheet
- FAQ – Payroll Protection Program
- This is a loan – Because of our polity, the Board of Administration of the Conference needs to approve any encumbrance on the church. The Board of Administration approved all FMCSC churches to apply for this loan if it is needed. The BOA does ask that you prayerfully consider the implication before applying for this loan.
- Terms – The terms are set at a 10 year amortization and 2.75% interest. Payments will not begin until 12 months after funds are deposited.
- Forgiveness – A portion of this loan may be forgiven based upon your Full-Time Equivalent Employees (FTE) in 2019 to your FTE in 2020. This can be calculated using the sheet below.
Steps to Apply
- Read the above materials
- Call your local bank and tell them that you would like to apply to participate in the Paycheck Protection Program
- Fill out the Paycheck Protection Program Application Form
- Complete the Paycheck Protection Program planning spreadsheet
If you would like more information here are a few resources: