The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on Friday, March 27.
The Act includes assistance in a number of forms, including forgivable loans for small businesses (including churches), employee-retention tax credits, direct stimulus payments to Americans, enhanced unemployment aid, payroll tax deferment, and charitable giving incentives.
The following resources will be helpful in evaluating the assistance available and determining what is most appropriate for your parish:
- CARES Act Key Provisions provides an overview of the types of assistance available to churches.
- Loans Available for Nonprofits provides descriptions and differences between Paycheck Protection Plan (PPP) Loans (forgivable loans of up to 2.5 times average monthly payroll cost) and Economic Injury Disaster Loans (EIDLs) (of $10,000)
- Coronavirus Emergency Loans Guide provides helpful details about the Paycheck Protection Plan.
- Paycheck Protection Plan (PPP) Loan – Borrower Information Fact Sheet provides details about when and where to apply. Applications will be accepted beginning Friday, April 3. It is recommended that parishes contact SBA approved lenders, preferably their own bank, which will make the application process easier. Parishes which plan to apply for PPP loans should contact Kathi Workman for current documentation of the parish’s 501(c)(3) status.
- Paycheck Protection Plan (PPP) Loan – Borrower Application provides details on the information needed to apply.
Please note that the Paycheck Protection Program (PPP) Loan, the Economic Injury Disaster (EIDL) Loan, and the Employee-Retention Tax Credit appear to be the programs which provide the greatest amount of assistance, depending on the size of the parish. The Employee-Retention Tax Credit provides a refundable payroll tax credit for 50% of wages paid during a total or partial closure of a parish during the COVID-19 crisis (for up to $10,000 per employee). The programs are mutually exclusive, meaning a parish may only take advantage of one of these programs.
We encourage parishes to consider the various types of relief available and if possible, to consult with a tax attorney or other expert in making the best decision. Please contact either the Rev. Canon Kim Karashin or me with any questions or concerns.
Faithfully,
Kathi Workman, Canon Treasurer
kworkman@episcopalpgh.org