The CARES Act, the federal government’s response to the COVID-19 crisis, includes assistance and recovery programs that churches can qualify for. Below you will find our webinar that includes information about how to apply and manage these provisions and programs, as well as additional funding sources that may help churches survive this crisis.
- The big picture relating to non-profits and churches
- How to prepare financial statements for government assistance programs
- Changes in unemployment insurance and how it impacts your church
- CARE Act’s Payroll Protection Plan and how a church can apply
- CARE Act’s Economic Injury Disaster (EID) Loans feasibility for churches
- Additional funding sources for churches
FAQ's From Webinar
CARE Act 101 for Churches
Q: The Paycheck Protection Program indicates to use the last year of salaries as a base. Is this Jan 1 – Dec 31, 2020 or March 1, 2019 – February 29, 2020?
A: The past year should be considered the 2019 calendar year. Though some banks are allowing businesses to use March 1, 2019 – February 29, 2020.
Q: If we pay a housing allowance for our pastor, should this amount be included in the salary base?
A: SBA has not made a ruling on housing allowances. The answer right now depends on what your lending institutions says. We anticipate a ruling from SBA shortly on whether housing allowances are considered salary.
Q: Should health care and pension benefits paid to the conference be included in the salary base?
Q: Are state and local taxes included in the salary base?
A: Yes, but not federal taxes.
Application for Paycheck Protection Program
Applying for SBA Disaster Loans (EIDL)
FAQ's Regarding Participation of Faith-Based Organizations in PPP and EIDL
List of participating lenders. (We encourage you to first contact your bank. If your local bank is not participating in this program, then consult this list.)
Documentation Needed to Apply
Checklist of documentation needed to apply for PPP or EIDL:
o Organizational Information
- State-approved Articles of Incorporation, if incorporated
- 501(c)(3) determination letter from the IRS
- Name and Address of potential Signers for the Good Faith Certificate (Loan).
o Financial Information
- Internal Financial Statements (whatever you have)
- Balance Sheet – December 31, 2019
- Income Statement – Jan 1, 2019 – Dec 31, 2019
o Bank Information
- Information for the bank account where the funds should be deposited.
o Payroll information:
- 2019 Quarterly Federal Tax Filings (941s), if any
- All W2s issued in 2019
- All 1099s issued in 2019
- For the period of 3/1/2019 – 2/29/2020, summarize by:
- Payroll Register
- Employer portion of Healthcare Insurance
- Employer portion of retirement benefit
- State or local taxes assessed and paid, if any
- NC Conference COVID-19 Financial Resources for Churches
- WNC Conference COVID-19 Financial Resources for Churches
- Helpful directions on completing the Paycheck Protection Plan application from Wespath.
- General Council on Finance and Administration (GCFA) is helping United Methodist Churches apply for PPP. They contracted with LBMC, a tax and professional solutions frim, to provide assistance in completing the PPP application and potentially filing through US Bank. Find more information.
- United Methodist Churches needing a copy of their 501(c)3 group ruling documentation can find it here.