The CARES Act May Help Your Church
By Ken Sloane
On March 25, 2020, the U.S. Senate unanimously passed (96-0) the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), commonly known as “Phase Three” of Coronavirus economic relief. The CARES Act provides much needed stimulus to individuals, businesses, and hospitals in response to the economic distress caused by the Coronavirus (COVID-19) pandemic. On March 27, 2020, the House of Representatives passed the CARES Act by voice vote. President Trump signed the bill into law that same day. It includes a $349 billion loan program available to small businesses, including churches and other 501(3)(c) non-profits, to help them keep their employees on payroll. Under relatively simple conditions, the loans are 100 percent forgivable (yes, they do not have to be repaid).
The application form for the Paycheck Protection Program Loans is now available and may be downloaded here:
Check the resource list below for the most up-to-date information we can find:
CARES Act Could be a Lifeline for Local Churches
The 2020 CARES Act includes a "paycheck protection plan" that will help pay staff but can also help with mortgage payments, rent, utilities, and payment of benefits.
CARES Act FAQ
The General Council on Finance & Administration (GCFA) has posted the following FAQ for churches about the impact of various provisions of the CARES Act, including the Paycheck Protection Program.
Getting Ready Now to Participate in the CARES Act’s Payroll Protection Program
Churches that are interested in participating in these Payroll Protection loans can do a few steps right now to get ready to apply.
Horizons Stewardship Provides Attorney Perspectives on CARES Act and Churches
Joe Park, CEO of Horizons Stewardship, was able to talk with Jeff Watson, a licensed practicing attorney who over the past 30 years has specialized in working with business leaders on a variety of financial matters.
SMALL BUSINESS ADMINISTRATION TO DIRECT PAYCHECK PROTECTION PROGRAM
The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses.
SBA Press Release
The Small Business Administration (SBA) has released its first press release on the CARES Act's Paycheck Protection Plan, which will provide loans to small businesses and non-profits—churches included—to help keep their employees working and receiving paychecks.
La Ley CARES 2020 podría ser un salvavidas para las iglesias locales
El Congreso de los Estados Unidos aprobó recientemente tres proyectos de ley de ayuda con el propósito de apoyar al país a navegar el impacto económico de la pandemia del coronavirus. El tercer proyecto de ley fue la Ley CARES 2020, que incluye un «plan de protección de cheques de pago», el cual que ayudará a pagar al personal, pero también podría ayudar con los pagos de la hipoteca, el alquiler, los servicios públicos y el pago de beneficios.
Summary of Potential Impact for the UMC
Ken Sloane is the Director of Stewardship & Generosity for Discipleship Ministries of The United Methodist Church.