CARES Act loan forms are now available


CARES Act loan forms

are now available

By Will Hall, A message Editor-in-chief

WASHINGTON (LBM) – The United States Department of the Treasury has released the form that must be completed when applying for a CARES Law Wage Protection Loan through a Small Business Approved Lender Administration.

Churches and Evangelists, as well as Christian schools and other nonprofit ministry organizations, can access the application form using this link:

https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

Otherwise, please visit this URL for the US Treasury and click on the fourth link shown on the landing page to go to the loan application:

https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses

THE ESSENTIALS OF THE LOAN

Basically, churches and other Christian ministries can receive a loan equal to 2.5 times the 12-month average of all salary costs. Essentially, this means that each nonprofit organization will receive a loan equal to 2.5 months of salary costs.

If the church maintains the same average number of employees until June 30, 2020, who were employed for one of the two periods (January 1, 2020 to February 29, 2020; or, February 15, 2019 to June 30, 2019 ), then the SBA will forgive 100 percent of the loan.

Church leaders should create a spreadsheet that totals all annual salary costs per employee, not to exceed $ 100,000 per employee, from March 2019 to February 2020. Costs may include:

– salary

– collective health care services

– paid sick, sick or family leave

– insurance premiums

– commissions or similar remuneration

– reimbursement by phone

– reimbursement of travel expenses

– retirement

– Housing allowance

Divide the total annual cost by 12, then multiply that number by 2.5 to determine the eligible loan amount.

In addition, non-profit organizations can include requests that the loan also covers:

– interest payments on any mortgage bond (which does not include early repayment or payment of the principal of a mortgage bond)

– rent (including rent under a lease)

– public services

– interest on any other debt contracted before the period covered

Evangelists are eligible for Payroll Protection Loans and other provisions for nonprofit organizations if they have implemented a 501 (c) (3) for their respective ministries. Otherwise, they are at least entitled to payroll protection loans as freelancers and can apply on the same terms and conditions as other freelance applicants.

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