Treasury Department Guidance on Apply for Paycheck Protection Program

The Department of Treasury is releasing more details on how to apply for the Paycheck Protection Program.  Most banks participating in the program should start accepting applications on Friday, April 3.  Here is the important information you need to apply.

• SBA Form 2483 Paycheck Protection Program (PPP) Application Form.

  • Note the box in the top left-hand corner to check for “Non-Profit”.

• PPP Information Sheet for Borrowers

  • This document explains the program and how to apply.

  • Note on page 2 that lenders will likely require documentation for your calculation of average monthly payroll.

  • This document clarifies the loan is due in 2 years (if not forgiven) at an interest rate of 0.5%.

• PPP Information Sheet for Lenders

  • If you are having challenges explaining this program to your local bank, share this information sheet with them.

  • If they are not participating, you will need to find a lender that is SBA-certified and is participating in the PPP.

I would HIGHLY RECOMMEND that all churches consider applying through the PPP.  This program is intended to help organizations, like churches, to continue to operate at full strength through this current trial. 

To summarize:

• The SBA provides a loan equal to 2.5 times your monthly payroll (explained in my post here).

• The loan will be forgiven entirely if you don’t make reductions in pay or staffing levels.

• Non-profits, including churches, qualify for the program.

• The application process begins on Friday, April 3.

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.