The Coronavirus Aid, Relief, and Economic Security Act (H.R. 748) ("CARES" or "Act") is an unprecedented aid package that creates new government-backed lending programs, including for non-profits; significantly expands unemployment assistance to those unemployed because of COVID-19, including to many who might not otherwise be covered; expands access to retirement plan funds; and creates payroll tax incentives for employers, including tax-exempts, to retain employees; among other relief.
Some of the provisions of the CARES Act directly apply to local churches, annual conferences, and other tax-exempt employers associated with The United Methodist Church.
Wespath offers a preliminary summary of the CARES Act. Full text of the package is also available here.
Wespath's Legal Department worked with colleague lawyers in the Church Alliance to create this summary of some of the important provisions of the Act as an information source for our stakeholders across the Church. It is a preliminary assessment based on the text of the statute and the understanding of Wespath's Legal staff and in-house and outside counsel who support the Church Alliance. Wespath staff will review forthcoming regulatory guidance implementing the new law, and determine our ability to implement retirement and health plan provisions.
More information about Wespath's response to the COVID-19 pandemic is on our webpage.