Congress recently passed the CARES (Coronavirus Aid Relief and Economic Security) Act and it created the Paycheck Protection Program. This is a loan program through the Small Business Administration, which, if the funds are used appropriately and in the 8 week time limit, is a forgivable loan. The application date begins April 3, 2020. We will be frequently updating this page as new information becomes available.
The Indiana Conference Treasurer prepared this video that describes the program and how congregations can apply. It’s easy to understand and is about 13 minutes long.
Video Link: Paycheck Protection Program Made Simple
The basics and a few clarifications that are different for Wisconsin:
- Churches may borrow up to 2.5 times the average monthly payroll costs
- These funds must be used in the 8 week period following the loan origination date for eligible expenses
- If used fully, the loan is forgivable. If not fully used, the unused portion becomes a long term loan
- Our Conference has determined that approval by the Finance Committee/Church Council is necessary but a charge conference is not required.
- There is concern that funds are limited and you should apply soon if your congregation determines this is appropriate. Applications can be made beginning this Friday, April 3.
- The purpose is to keep people employed through June 30, 2020
- Talk with your local bank or look online to see if your bank is an approved SBA lender. They are still receiving documentation on processing and approval and are expected to be overwhelmed with applications.
- U.S. Department of the Treasury
- Small Business Administration (SBA) Information
- You can download a sample application form from this website.
- SBA FAQ for Faith-Based Organizations
- FAQ from GCFA
- GCFA COVID-19 Resources
- Church Law and Tax
- Horizons Stewardship COVID-19 Resources
- Sample Finance Committee Resolution - Download as PDF or Word Document
- Sample Church Council Resolution - Download as PDF or Word Document
- FEMA Fact Sheet - Private Nonprofit Organizations for Public Assistance Program
- Church Mutual's COVID-19 Message
Please let me know if you have questions or the Finance Department of the Conference can help in any way.
Wisconsin Conference Treasurer/Director of Administration