Our church is served by a core of capable and professional leaders. Recently, at the initiative of Church Treasurer Bill Martin and our Finance Committee and under the supervision of members of our Deacon body and Church Council, the church took the following measures to help strengthen our financial stability during these uncertain days of the impact of the COVID-19 outbreak. I offer the following information prepared by Bill Martin for our awareness:
To help the Church through the financial challenge presented by the coronavirus shutdown, in mid-April we applied and were approved for a forgivable loan through Central Bank under the federal government’s Paycheck Protection Program (PPP). The amount of the loan, which we received on April 18, is $60,900.
The PPP is part of the CARES Act, which was passed by Congress in late March to, among other purposes, provide financial assistance to individuals and employers affected by the coronavirus shutdown. The purpose of the PPP is to keep as many people as possible employed by providing small businesses, nonprofits (including churches), and other employers with funds to pay up to eight weeks of payroll costs. The funds can also be used to pay utilities.
The funds are provided in the form of a loan that will be fully forgiven when used for payroll costs and utilities, provided that: at least 75% of the funds are used for payroll expenses, the number of employees does not decline and all salary levels are maintained.
The loan amount is 2.5 X the employer’s monthly payroll. If any portion of the loan is not forgiven, the amount not forgiven is repaid over two years with a fixed interest rate of .50%. We fully expect to meet the terms for forgiveness.
The applicant/employer is not required to provide collateral (such as a mortgage) or personal guarantees on the loan, and there are no fees. The program is run through the Small Business Administration and SBA approved lenders. Central Bank, with which we have a longstanding relationship, is one of those lenders.
When the PPP was announced, employers were encouraged to apply as soon as possible because there was a limit to the funds available. Because the statewide restriction on gatherings made it impossible to conduct a business meeting, a proposal to apply for a loan was made to the Church Council, which approved the proposal. Around the time our loan was funded, there already were news accounts that the original PPP allocation had been exhausted.
We are very fortunate and blessed to be guided by such capable leadership. Thank you, Bill, and all others involved in this helpful step of financial strength for the future of our church.
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THANKS to Bill Martin & Financial Committee for wise, timely ,proper & decisive action!!!