The Paycheck Protection Program (PPP) and Health Care Enhancement Act was passed by both houses of Congress and signed on April 24, 2020, by President Trump. The new law replenishes the initial $349 billion of the Paycheck Protection Program that ran out on April 16, 2020. It provides an additional $310 billion for PPP, plus $60 billion more for separate Economic Injury Disaster Loans (EIDLs).
Just like the initial round of the PPP, churches are eligible to apply and should start the process immediately if they are interested. The U.S. Small Business Administration began accepting applications on April 27 (You can see the notice here). Churches should contact their local bank.
The PPP offers employers with fewer than 500 workers, including churches and nonprofits, the chance to obtain loans to help them keep their employees on payroll and other certain operational expenses over an eight-week period during the COVID-19 (coronavirus) pandemic. 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.
Board of Retirement COVID-19 Resources
Church Law and Tax – How Churches Can Apply for the Paycheck Protection Program
(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.)