PPP Loan Update #2
You have probably already seen a number of news reports on the recent approval of additional PPP funding that may benefit your churches. I wanted to highlight how it might specifically affect our churches and send you a few good links to information on the new funding approved by Congress.
1. Who is eligible for additional PPP Funding?
Churches that didn’t apply for initial funding last year. If you didn’t apply for funding in 2020, you are able to newly apply, subject to the same rules that applied last year. Contact me if you have any specific questions on how to begin this process if you are interested.
Churches that received a PPP Loan last year. Churches that already received funding in 2020 are eligible to apply for additional funding if they experienced at least a 25% reduction in giving in any one calendar quarter comparing 2019 to 2020.
2. How much can I receive, and what is the forgiveness process?
If you qualify per above, the amount of funding in both cases is still tied to the amount you spent on payroll, up to 2.5 times your average monthly payroll.
A few additional types of expenditures were added to what qualifies. Otherwise, the same rules apply as last year.
A simplified one-page forgiveness application process was added for loan amounts under $150K.
If you previously applied for the loan and returned it, you are eligible to re-apply.
The deadline for applying under the new law is March 31, 2021.
3. What are some good links to find additional information on the new PPP funding?
If you have any questions on how this might affect your church, I would be glad to discuss them with you.
Grateful to be able to serve all of you!
Tommy Hill
Tommy Hill serves as the Director of Finance for Sovereign Grace Churches. He is also the Administrator for Cornerstone Church of Knoxville where he lives with his wife Elizabeth and their children.