How the Coronavirus Stimulus Bill benefits your church
District Executive Minister
On March 27, 2020 the $2 trillion Coronavirus Stimulus Bill called the CARES Act(Coronavirus Aid Relief & Economic Security Act) was put into effect. First, we highly encourages all district churches take hold of the benefits that the CARES Act affords. But on a more pastoral note, we know that such opportunities are not common and that they do require some leg work. Please do not be overwhelmed by a new process. We encourage you to patiently persevere through this opportunity and gain the benefits intended for your church and church staff. The benefits are that:
This loan is forgivable based on your documentation of staff retention and otherapproved uses of loan proceeds between February 15, 2020 and June 30, 2020.
Should you receive funds and not use all or a portion of them for the approved loan forgiveness purposes, then the loan terms are extremely favorable at 4% APR paid back over 10 years with no payments until 2021.
How can my church apply?
There are certain regulations for applying for and receiving a forgivable CARES Act Paycheck Protection Loan. Though we have spelled out certain details, the Converge Heartland District does not claim to be a legal authority on this matter and we sincerely encourage you to connect with your bank or a local bank that offers Small Business Administration (SBA) loans, as they will manage the applicants and distributions of CARES Act Paycheck Protection Loans. They will give you final clarity on required documentation. However, here is what we can say for certain:
Get your documents ready. You should be able to locate the following items:
Incorporation documents, bylaws, and certificate of good standing in your state
Federal & state payroll tax filings
Financial reports from March 2019 through February 2020
In the end, an authorized person(s) in your church will need to verify that your church's documentation is true and correct and that spent funds were documented and used for their stated expenses.
Apply for a CARES Act Paycheck Protection Loan through a local bank that administers Small Business Administration (SBA) loans.