United Methodists of Greater New Jersey and its vital mission partner, A Future With Hope, are assisting churches to apply for CARES Act programs designed to keep small businesses, including churches, operating during the COVID-19 pandemic.
Bishop John Schol issued a letter on April 2 outlining the CARES Act Paycheck Protection Program (PPP), designed to keep as many employees as possible on the payroll of all small businesses—from small manufacturers to restaurants to the service industry. For what is believed to be the first time, the federal government added not-for-profit corporations, including churches and related organizations, to the list of eligible participants.
The Bishop’s letter was followed by two conference calls Friday. The calls drew more than 500 representatives of local churches eager for more detailed information. GNJ set up the special email address caresact@gnjumc.org. By April 6, staff members had fielded about 100 questions.
PPP applications are to be made to SBA-approved banks, not to SBA itself. GNJ advises churches to file applications with the banks with which they have existing account relationships. Bishop Schol and John Cardillo, GNJ’s treasurer and director of administrative services, are endeavoring to find banks that will consider applications from non-customers.
Congress has authorized and appropriated $350 billion for PPP, allowing small businesses to continue to pay employees. PPP is just one part of the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress. “Urgency is required because if all congregations in the U.S. filed for funding, the total request would be more than $4 trillion,” noted Bishop Schol.
PPP will pay for two and a half months of payroll, with certain limitations and exceptions. Although the program is structured as a loan program, if a church continues to employ a full roster of employees for the eight weeks following the award, the loan is converted to a grant.
Information and the PPP application and information is available on the GNJ website: www.gnjumc.org/covid19. Banks may require more information than is contained in the loan application. Churches are urged to contact their local banks for details.
“The District Superintendent and a charge conference must approve your application for this funding,” Bishop Schol said. “Because of the urgent nature of these funds, we suggest you file first, and we will work with you to set a charge conference if you are approved.”
PPP is but one program available to GNJ churches. The GNJ website also has information about the SBA’s Economic Injury Disaster Loan (EIDL) Emergency Advance Program. As more information about other programs become available, A Future With Hope will keep church leaders updated.
“EIDL program allows a church to file an application for $10,000 in direct funding ,” said Rick Reinhard, AFWH executive director. Only over the weekend did Small Business Administration rule that churches would be able to file for EIDL funding. “So as we did with PPP funding, GNJ will forward more detailed information to churches as soon as it is available.”
PPP is but one program available to GNJ churches. The GNJ website also has information about the SBA’s Economic Injury Disaster Loan (EIDL) Emergency Advance Program. As more information about other programs become available, A Future With Hope will keep church leaders updated.
“EIDL program allows a church to file an application for $10,000 in direct funding ,” said Rick Reinhard, AFWH executive director. Only over the weekend did Small Business Administration rule that churches would be able to file for EIDL funding. “So as we did with PPP funding, GNJ will forward more detailed information to churches as soon as it is available.”