SBA Launches Second Round of PPP Loans

1/15/2021

The North Georgia Conference encourages churches to explore and consider pursuing funding through the PPP Loan. Find helpful communications on the topic below.
 

PPP Loan Extension: Summary FAQs from Wespath and GCFA

The Consolidated Appropriations Act of 2021 (CAA) signed into law December 27, 2020 extends the Paycheck Protection Program (PPP) with additional funding and some refinements to further help small businesses, including tax-exempt organizations. [The PPP lending program was initially created by the Coronavirus Aid, Relief and Economic Security (CARES) Act in late March 2020 and was due to expire December 31, 2020.] The CAA provides $300 billion to the Small Business Administration (SBA) to reopen the PPP loan program. Churches and other religious organizations are eligible for PPP loans.

Wespath and the General Council on Finance and Administration (GCFA) have partnered to develop FAQs to assist local churches, annual conferences and other Church-related organizations in considering whether to apply for a “Second Draw” PPP loan. You can read the FAQs here.

We continue to analyze details of the massive CAA legislation and will publish information as it becomes available.
READ FAQs
 



What the Second Round of PPP Loans Means for Churches and How to Get One

From Horizon Stewardship
The Consolidated Appropriations Act of 2021 (CAA) includes $284 billion dollars for a second round of Paycheck Protection Program (PPP) Loans for which churches and nonprofits are eligible to apply through participating banks. Church Executive Magazine invited Horizons CEO, Joe Park, to write an editorial article in their January edition to help readers understand what the new PPP Loan funding means to churches.

Click here to view the full article.

 


UMC FCU Now Accepting Applications for Second Round of PPP Loans

From the United Methodist Connectional FCU
The United Methodist Connectional Federal Credit Union will once again be helping its member churches with the Paycheck Protection Program. At the close of 2020, Congress passed a COVID Relief Bill that included a second round of PPP funds.

The credit union is now accepting applications for the Paycheck Protection Program. Jonathan Curtis will be managing the process for the credit union. Contact Jonathan at jonathanc@unitedmethodistcu.com.
 
If your church plans to apply for this round of PPP Loans, some of the information needed includes:
  • Average monthly payroll for 2020 or 2019. (Your PPP funds will be this figure times 2.5.)
  • Gross revenue for 2019 and 2020. Churches requesting a second draw will need to show a 25% decrease in revenue in corresponding quarters over 2019 and 2020. For example, 1st quarter 2019 to 1st quarter 2020. It is also possible to show a 25% decrease in revenue for the whole year.
  • For churches getting a second draw, a record of payroll expenditures compared with the PPP funds received
  • Employee records, specifically the number of employees.
Find more information about the second round of PPP Loans at www.sba.gov
 
 

Truist Bank Shares an FAQ

From Truist Bank
More financial support is on the way to help businesses through the COVID-19 pandemic. Thanks to recently passed legislation, Truist clients will soon be able to apply for funding through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) with Truist. We’ll start accepting applications from our clients for new First Draw PPP and Second Draw PPP loans in the next few weeks. Until then, you can enroll in alerts for the latest news and earliest access to applications—or visit our FAQ to learn more about how the PPP works. 

Read more from Truist at https://www.truist.com/payment-relief/business/ppp.
 


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