Hoping to weather the financial strain brought on by the COVID-19 (coronavirus) pandemic, many churches jumped at the chance to apply for the CARES Act’s Paycheck Protection Program (PPP) loans. This program offers small employers, including churches, short-terms loans—with the important possibility they’ll convert into nontaxable grants.
But this provision has proven frustrating and confusing from the start.
Last week, trouble surfaced again when the US Small Business Administration (SBA) issued another updated “frequently asked questions” article. This time, the SBA warned applicants and recipients it may audit any PPP loan recipient regarding what it certifies about itself on its application and how it uses loan proceeds. The SBA also stated it will automatically perform these audits with any entity receiving a loan of $2 million or more.
What does this development mean for churches who get a PPP loan? This week, attorney and senior editorial advisor Frank Sommerville co-authored this free article explaining what the latest SBA guidance means for church leaders. If your church received a PPP loan already, you’ll want to review this article to understand what to do next, especially with a potentially relevant deadline approaching Thursday.
If you are in the process of applying, or your church plans to do so, this article also will help you understand some additional steps you’ll want to take before and after submitting your application.
Also this week:
- LAST CHANCE! Join attorney Sarah E. Merkle and me later today for a free, one-hour webinar on running virtual church business meetings that are legally valid.
- Using Zoom for worship services, small groups, or church meetings? Heed these cautions and tips for using the video conferencing platform.
- How church leaders might think about measuring online attendance.
The Lord bless you and keep you,
