Applications are now available for a second round of loans for the Paycheck Protection Program (PPP) through the Small Business Administration (SBA) and participating banks and lenders. The Consolidated Appropriations Act, 2021, allows nonprofit organizations, including churches, to apply for PPP funding, regardless of whether the entity received a loan in the first round. To be eligible, organizations must have 300 or fewer employees, have used or will use the full amount of any previous PPP funding, and be able to demonstrate a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019. The same conditions for the first PPP loans continue with 60% of the funding required to be spent on payroll over a period of 8 or 24 weeks. Up to the remaining 40% may be spent on rent, utilities, and applicable mortgage interest. For the first time, this round will allow the up to 40% portion to also be used for worker protection and facility modification expenditures (including personal protective equipment to comply with COVID 19 federal health and safety guidelines), expenditures essential at the time of purchase to the current operations, and operating costs associated with software and cloud computing services and accounting needs.
Whether or not you received PPP funding in 2020, carefully look at the program requirements to determine if you are eligible to apply. If you think you are eligible, contact your bank or financial institution for help in determining final eligibility and applying for this additional PPP funding.
For more information:
Information from the SBA on the PPP and second draw PPP loans
The Consolidated Appropriations Act, 2021
Information from Wespath about 2020 COVID legislation and eligibility for churches