What Churches and Non-profits Need to Know About the Paycheck
Protection Program

On Saturday, President Trump tweeted, "The Paycheck Protection
Program is up and running! The program is open to nonprofits as well,
so banks be sure to sign up our Great Religious and Veteran
Organizations that need help!"

Perhaps you work at one of those "Great Religious"
organizations, or you know someone who does. If you're at a
church or non-profit and wondering whether you're eligible for
the program, what's entailed, or how the program actually works,
keep reading. If you're not, consider forwarding this to a
church leader or someone who may appreciate the extra help.

First things first: What is the Paycheck Protection Program?

The Paycheck Protection Program is one of two new types of loans
available to small businesses through the recently signed CARES Act
(the Congressional economic relief package which you can read about
here). Churches must have fewer than 500 employees to qualify as a
"small business." The Paycheck Protection Program is a
loan - up to $10 million - aimed at retaining small
business employees. As such, the portion of it used toward payroll
(and certain other expenses) will be completely forgivable provided
that at least 75 percent of the loan goes toward payroll costs.
Otherwise, the loan has a fixed one percent interest rate and maturity
of two years.

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Is my church eligible?

Yes. A recent Congressional news release clarified: "All
churches are eligible for the forgivable loans available under the
Paycheck Protection Program."

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Do churches and religious non-profits have to do anything extra to
qualify?

No. The government has clarified that churches will be subject to the
same limitations on the loans as other entities, but not to any
additional or unique burdens.  As the release stated, "No
church should have to file a Form 990" and non-profits do not
need a tax exemption "determination letter" from the IRS.

If I participate, will the government restrict my religious activities
or speech?

A loan will not limit an organization's First Amendment
religious rights. It is true that churches receiving the funds must
abide by federal nondiscrimination standards (which include race,
color, religion, sex, handicap, age, and national origin), but the
Small Business Administration has clarified that "these
nondiscrimination requirements do not limit a faith-based
entity's autonomy with respect to membership or employment
decisions connected to its religious exercise."

For greater detail and additional answers (for example, technical
information about what qualifies as a "small business"),
please check out the Small Business Administration's FAQs or
full guidance.

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For churches, we recommend COVID Church Aid, a website filled with
COVID-19 resources for church leaders, including resources on the
Paycheck Protection Program.
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How does this affect ministries like Family Policy Alliance?

While churches and many non-profits are eligible to utilize the new
funding, organizations and ministries like Family Policy Alliance that
engage in election and legislative work are not. As a result, we are
more thankful than ever for the faithful, sacrificial giving of our
ministry partners.  Regardless of your ability to give
financially to Family Policy Alliance at this time, we are deeply
grateful for your gift of prayer for our ministry.  And please
know, the Family Policy Alliance team is steadfast in praying for you.

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Reflecting on this Holy Week, President Donald Trump observed,
"We may be apart, but we can use this time to turn to reflection
and prayer and our own personal relationship with God. I would ask
that all Americans pray for the heroic doctors and nurses, for the
truck drivers and grocery store workers, and for everyone fighting
this battle. ... Most of all, I would like to ask for your
prayers for the families who have lost loved ones. Ask God to comfort
them in their hour of grief, a great hour of grief for our nation, for
the world. ... With the faith of our families, and the spirit of
our people, and the Grace of our God, we will endure, we will
overcome, we will prevail. We have learned so much. We will be
stronger than ever."

We couldn't agree more.

Sincerely,


Meridian Baldacci
Policy and Communications Strategist

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Mailing Address:
8675 Explorer Drive, Suite 112
Colorado Springs, CO 80920
(866) 655-4545
FamilyPolicyAlliance.com


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