Resilient Leadership Update #10 - (Special PPP Loan Edition)
This Special Edition of Resilient Leadership is focused on two pressing questions facing many of our churches:
- What should we be doing if my church was not approved for a Paycheck Protection Program (PPP) Loan before funds ran out?
- What steps should we be taking now to ensure our PPP Loan is forgivable?
Last Thursday morning (April 16), the Small Business Administration (SBA) reached its maximum $349 billion in funding for the PPP loan program leaving tens of thousands of church loan requests unfunded. The SBA has announced that it cannot approve additional loans until Congress appropriates more funding. While far from certain, it does appear both parties in Washington would like to see additional funds approved.
Expert Interview: PPP Funds Are Out—For Now. What’s Next?
I sat down with Jeff Watson, a licensed attorney with years of experience in government-backed loans and the legislative process, to ask exactly this question. Watch the entire interview. Jeff’s advice for churches, non-profits, and their 1099 employees is this: Continue to aggressively pursue the loan application process with your lenders so that your application is ready for submission when additional funds are approved. In our conversation, we also discussed the difficulties some churches have had in getting their loans approved and what they can do to increase their chances of approval if new funding is approved.
While we have had the opportunity to celebrate PPP loan funding with thousands of churches, I remain concerned that many may find applying for forgiveness a challenge. The CARES Act lays out specific criteria organizations and individuals must meet to apply for forgiveness, and we should expect further clarification to come in the days and weeks ahead.
Special Webinar on Friday, April 24: Strategies to Maximize PPP Loan Forgiveness
To help churches prepare for compliance with these requirements, we have scheduled a must-attend webinar with Stan Reiff, a CPA, Consulting Practice Lead, and Partner with CapinCrouse, one of the largest audit firms in the country that exclusively serves churches and faith-based nonprofit clients. Stan will share best practices related to the administration of PPP funds as well as strategies to maximize loan forgiveness.
This webinar is scheduled for this Friday, April 24, at 10am CDT/11am EDT. All who register will be able to download a recording of the webinar. Participation is limited to the first 1,000 to register. I expect this webinar to exceed our maximum capacity, so don’t delay in securing your registration today.
Last, don’t forget to visit our COVID-19 Resource Center for relevant links to help guide you through this unique season of ministry.
Stay healthy and keep leading strong!
P.S. Horizons is working around the clock to support you during the Coronavirus outbreak and during this time of social distancing. To stay up to date and have access to the latest resources, sign up for a FREE Giving 365 account. When you do that, you’ll be the first to know when new ideas, strategies, and resources are available to help you lead strong.