Churches, Christian Schools and Nonprofits Part of Rescue Plan | Downloads
Churches, Christian schools, and nonprofits are among those who could find relief from the $ 2.2 trillion rescue program, also known as the CARES law, which was enacted by the President Donald Trump Friday after sweeping the Senate and House chambers.
Entities that are 501c (3) are eligible to participate in $ 350 billion in federally guaranteed loans through the Paycheck Protection Program which provides eight weeks of cash flow assistance to small businesses that maintain their payroll during the emergency.
“Churches, Christian schools and other nonprofits will have much needed access to federally guaranteed loans to continue their mission while protecting their workers,” said Senate Majority Leader , Mitch McConnell. “In times of crisis, Kentuckians are constantly mobilizing to help their neighbors in need. I am so proud of the organizations and individuals – many of whom are people of faith – who provide inspiring care for the elderly in Kentucky and those who need to be extremely careful.
In the paycheck protection program, if the employer maintains its payroll, the portion of the loan used to cover wage costs, interest on mortgage bonds, rent and utilities would be forgiven, which would help employers. workers to stay employed and would affect small businesses and our economy recovering quickly from this crisis.
This proposal would be retroactive to February 15, 2020 to help reinstate workers who may have already been made redundant.
“The coronavirus presents a serious challenge for every Kentuckian,” McConnell said. “This is why I have mobilized your government as the main majority leader to pass a bold bailout that will immediately put money in the hands of families and small businesses in Kentucky. “
Here’s an overview of the Paycheck Protection Program:
–The bill would provide $ 350 billion to support lending through the new program to:
- Small employers with 500 or fewer employees, as well as those who meet current Small Business Administration (SBA) size standards;
- Independents and individuals of the “gig economy”; and
- Some non-profit organizations, including 501 (c) (3) and 501 (c) (19) veterans organizations, and tribal businesses with fewer than 500 employees.
–Loan size would equal 250 percent of an employer’s average monthly payroll. The maximum loan amount would be $ 10 million.
– Salary costs covered include salary, wages and payment of tips in cash (up to an annual rate of pay of $ 100,000); group employee benefits, including insurance premiums; pension contributions; and covered leave.
–The cost of participating in the program would be reduced to both borrowers and lenders by offering fee waivers, automatic deferral of payments for one year, and no prepayment penalties.
–Loans would be available immediately from more than 800 SBA-certified lenders, including banks, credit unions and other financial institutions, and the SBA would be required to streamline the process to bring additional lenders into the program .
–The Treasury Secretary would be authorized to speed up the addition of new lenders and make other improvements to speed up the delivery of capital to small employers.
–The maximum loan amount for SBA Express loans would be increased from $ 350,000 to $ 1 million. Express loans provide borrowers with revolving lines of credit for working capital purposes.
No owner, trustee or board member of the organization has to sign a personal guarantee for the loan.
Funds that don’t come back – if you have fewer employees in 2020 than in 2019 – have a 10-year loan term.
Normal operating expenses like marketing, administration, travel, etc. are not included in the CARES invoice. The Federal Reserve and the Small Business Administration have been fully funded in recent weeks with additional dollars to help small organizations.
If a church or nonprofit has laid off staff, these former workers have increased unemployment through emergency unemployment assistance for nonprofits. CARES allows states to reimburse nonprofits for half of the costs they incur until December 31, 2020, to pay for unemployment benefits.