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Could a second round of PPP money be for your ministry?

Could a second round of PPP money be for your ministry? 1024 678 The Provisum Group

If anything became clear during the global pandemic in 2020, it was that many churches were not on as solid of ground as many thought. Parishioners who attended once a month or less now had a reason to not attend. Donors suddenly were unemployed or under-employed and many simply stopped giving or reduced their gifts.

During the pandemic, several my clergy colleagues were forced to close their churches. Some of those churches could not survive the drop in revenue and never reopened. Then came the Paycheck Protection Program. My staff at The Provisum Group, reviewed the initial offering and discovered that, yes, the PPP was for churches too, and began applying for the relief program for all of our clients. It was a godsend and I know that for a few of our church partners, it was the only thing that helped them stay open in the initial months of the pandemic.

Now we are at a new chapter in the life of the church. A pandemic still rages on but our churches have reopened their doors. Not as many people have returned and most church services look different but the only thing that is consistent is that giving and attendance are down and budgets are tighter. While there are some churches out there who have done well, many pastors are trying to determine if they can keep some of their staff members or if they should cut programs and outreach.

In the great commission, Jesus didn’t say to “preach the gospel to all people except when budgets are tight.” He said it without exception, but Jesus promised that if you did so, He would be with you always. That is why I believe that this second round of PPP money could be seen as manna in the desert.

In this round of PPP, there are a few new rules that you must follow to apply but the forgivable nature of the loan remains unchanged. New with this round of the program is the requirement that an organization may get a second loan so long as:

  1. They are not a publicly-traded company
  2. They do not employ more than 300 people
  3. They experienced at least a 25% drop in revenue in at least one quarter in 2020

Almost every church meets requirements one and two but the third one is one where you need to examine your finances. If you qualify, the government not only will likely approve your loan but will make it easier to forgive. If you take less than $150,000 all you need to do is submit a one-page letter certifying the number of employees you kept employed and an estimate of how much of the money was spent on payroll.

While some churches are closing their doors, you could use this money to keep your staff employed and also use your existing funding from tithes and offerings to invest in programs to connect with your community and neighborhood. There are people hurting all around us who have lost loved ones or their jobs who don’t know where to turn, and the Church can be that place of refuge.

If you don’t know where to begin, please reach out to us by CLICKING HERE. Our team would be happy to talk with you and walk you through the general information about the program. I would encourage you to take this step and see what God can do with the money in your community.

So my lawyers can sleep at night I have to state the following: Neither the author or The Provisum Group are attorneys or financial advisors so the information above is not to be considered as legal or financial advice. The author encourages you to pray and seek legal or financial advice before entering in to any financial or banking relationship on behalf of your ministry.

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