Here are some important facts about the recently passed CARES Act and its provision for a Payroll Protection Program.
- Churches, as non-profit corporations, qualify for the payroll protection loans funded by the program. The loans cover 2.5 months of normal payroll. If the funds are used for that purpose, the loan will be converted to a GRANT.
- The funds allocated by Congress are expected to be committed quickly, so don’t delay in making application (with a bank that is set up to grant SBA loans). Signup began on April 3rd. Download the application.
- The Small Business Administration (SBA) has confirmed that religious freedom protections will be in effect for these loans.
- There are a wealth of resources out there for further details. A few of the most helpful include:
- An FAQ from the Small Business Administration regarding participation in the program by Faith-based organizations
- Paycheck Protection Program Fact Sheet
- The Church Law and Tax website has a webinar on the PPP program along with continued updates.
- The website of Batts, Morrison, Wales and Lee; Certified Public Accountants. This site was recommended by Alliance Defending Freedom (ADF)
- The website of Gammon & Grange Law
- The CARES Act
- The CARES Act and its Impact on Non-Profit Organizations, an article by attorney Richard C. Baker