Under the $2.2 trillion stimulus package known as the CARES Act, the Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. Churches and non-profits are eligible for these loans.
Starting today, April 3, churches can apply through their local bank. The loan can be use for payroll costs, including benefits, interest on mortgage obligations, rent, and utilities.
Payroll costs include:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee), Housing allowance not included in the intent of the legislation, however some lenders are including this into payroll costs
- Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit
- State and local taxes assessed on compensation (No federal taxes)
- For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
For more details:
Vanderbloemen Details of CARES Act
Vanderbloemen CARES Act Slides (Updated)
(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.)