Fresh Round of Payroll Protection Loans for Churches
FRESH ROUND OF PAYROLL PROTECTION PROGRAM LOANS FOR CHURCHES
Congress approves and President signs new Consolidated Appropriations Act, 2021 which includes a new round of Payroll Protection Program loans. Once again, nonprofit organizations, including churches, are eligible to apply, regardless of whether the entity received a loan in the first rounds. $284 Billion has been set aside for the program. To be eligible, organizations must have 300 or fewer employees, have used or will use the full amount of any previous PPP Loans and can demonstrate a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019. The same conditions for the first rounds of the PPP loans continue- 60% must be spent on payroll lover 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 allows the up to 40% to be used on 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.
The first step is to contact your current banking institution.
Source: American Institute of Certified Public Accountants, December 30, 2020 edition.
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