As you may be aware, on Friday, March 27, 2020, President Trump signed into law the massive $2.2 trillion stimulus bill, known as the “Coronavirus Aid, Relief, and Economic Security Act,” or the “CARES Act.” This legislation will provide potential relief to ensure churches and pastors have the same options as small businesses and self-employed individuals attempting to financially weather the economic turmoil wrought by COVID-19.
Of note, the bill includes a $349 billion Small Business Administration (SBA) loan program available to small businesses, including churches and other 501(3)(c) non-profits, to help them keep their employees on payroll. The loans convert to grants (and can be forgiven) if used for covering employee salaries, rent, paid leave, utility payments, health insurance premiums, or other necessities or worker protections.
While churches can apply for these loans and the forgiveness program, they should exercise caution and understand the restrictions that come with the loans. If a church is interested, they should speak with their local banker.
The Board of Retirement will update as more information and guidance is provided.
(This text is provided with the understanding that the Board of Retirement is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.)