Friends in Christ,
The Paycheck Protection Act that was recently passed by Congress has included non-profit organizations, such as churches.
We encourage you to look into this program and see how it best fits your local church. Please make sure your Finance Committee, Trustees, and Administrative Council (Church Council) review the program. Your local church’s legal counsel would also provide sound advice for you.
This is a “loan to grant” program, meaning that the loan may be become a grant, if certain criteria is met. Also, please note in the information provided in these following links that describes the program’s intent, guidelines, and stipulations:
https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf
This program has the potential to provide significant financial relief for local churches’ salaries and benefits for their staff members, including pastoral salaries and benefits.
Please remember, this is a new program and may still be subject to ongoing interpretations. Be watchful for any future communications from governmental agencies, such as the Small Business Administration and the Treasury Department.
In addition, be sure to use these links from our General Council on Finance and Administration (GCFA) and from UMC Discipleship for questions and answers regarding the CARES act:
https://www.gcfa.org/media/2173/cares_faq_033312020.pdf
https://www.gcfa.org/media/2174/ffcra_rev03312020.pdf
https://www.umcdiscipleship.org/articles/cares-act
A part of the application requires a local church provide proof of affiliation from the GCFA regarding non-profit tax status. These links will provide this information:
http://umgroupruling.org
https://www.irs.gov/charities-non-profits/group-exemption-resources
You can contact GCFA directly to ask questions:
[email protected].
You and your ministries in the name of Jesus Christ are always in our prayers.
Margaret Biggs
Conference Treasurer and Director of Administrative Services
[email protected], 515-974-8919
Joni Mardesen
Conference Director Human Resources, Benefits Office
[email protected], 515-974-8940
Rev. Dr. Harlan Gillespie
Assistant to the Bishop
[email protected], 515-974-8903
