By Roy Hayhurst
Director, Denominational and Public Relations Services, GuideStone
DALLAS — Legislation signed late Dec. 27 by President Donald Trump includes provisions that could assist churches and ministry organizations, including additional funding for the Paycheck Protection Program (PPP), as well as direct payments to some taxpayers.
An additional $284 billon is made available for forgivable PPP loans, and $20 billion is included for Economic Injury Disaster Loans for businesses and nonprofits provided through the Small Business Administration (SBA). The PPP under the program are “Second Draw” loans. If a church or ministry has 300 or fewer employees, has sustained a 25 percent revenue loss in the first, second or third quarter of 2020 as compared to the same quarter in 2019, and has used, or will use, the full amount of the first PPP loan, then it is eligible for a Second Draw PPP loan.
GuideStone® has provided a question-and-answer document with key questions related to the new legislation at GuideStone.org/Promotions/COVID-Relief-Legislation.
The law provides that a church or ministry may borrow an amount equal to 2.5 months of average monthly payroll expenses up to a maximum of $2 million. Employers may not borrow more than $10 million in aggregate between the first and second PPP loans. Additionally, the law provides a more streamlined loan-forgiveness process for those applying for PPP loans under $150,000. [Read more…]