Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)

20 views
Skip to first unread message

Bart Worden

unread,
Apr 2, 2020, 8:35:50 PM4/2/20
to Connections
Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) includes a loan forgiveness program may be a way for Ethical Societies to cover payroll costs.  https://bit.ly/2UWcQ4W


Jone Lewis

unread,
Apr 4, 2020, 4:36:47 PM4/4/20
to Connections
FAQ Regarding Participation of Faith-Based Organizations in PPP and EIDL

David Bland

unread,
Apr 4, 2020, 4:57:02 PM4/4/20
to Connections, Jone Lewis
Thanks for sending this, Jone.


By the way, if any of you use Bank of American, they put up a special portal yesterday for these SBA programs.  It's very easy to apply, I did it yesterday for the Bergen Society




Inline image


On Saturday, April 4, 2020, 04:36:49 PM EDT, Jone Lewis <jone...@gmail.com> wrote:


FAQ Regarding Participation of Faith-Based Organizations in PPP and EIDL

--
You received this message because you are subscribed to the Google Groups "Connections" group.
To unsubscribe from this group and stop receiving emails from it, send an email to connections...@aeu.org.
To view this discussion on the web visit https://groups.google.com/a/aeu.org/d/msgid/connections/6fe5911a-1f97-4a1d-8880-59bfb8c49ea0%40aeu.org.

Jone Lewis

unread,
Apr 4, 2020, 5:01:50 PM4/4/20
to David Bland, Connections
Dueling federal websites!    The SBA is, I believe, the agency responsible for administration, so I'd trust them, especially because this is a FAQ created about this specific topic.

Bart Worden

unread,
Apr 4, 2020, 7:07:01 PM4/4/20
to Connections
Excerpts from the FAQ that Jone posted:

FREQUENTLY ASKED QUESTIONS REGARDING PARTICIPATION OF FAITH-BASED ORGANIZATIONS IN THE PAYCHECK PROTECTION PROGRAM (PPP) AND THE ECONOMIC INJURY DISASTER LOAN PROGRAM (EIDL)

1. Are faith-based organizations, including houses of worship, eligible to receive SBA loans under the PPP and EIDL programs? 

Yes, and we additionally clarify that faith-based organizations are eligible to receive SBA loans regardless of whether they provide secular social services. That is, no otherwise eligible organization will be disqualified from receiving a loan because of the religious nature, religious identity, or religious speech of the organization. The requirements in certain SBA regulations— 13 C.F.R. §§ 120.110(k) and 123.301(g)—impermissibly exclude some religious entities. Because those regulations bar the participation of a class of potential recipients based solely on their religious status, SBA will decline to enforce these subsections and will propose amendments to conform those regulations to the Constitution. Although 13 C.F.R. § 120.110(a) states that nonprofit entities are ineligible for SBA business loans (which includes the PPP program), the CARES Act explicitly makes nonprofit entities eligible for the PPP program and it does so without regard to whether nonprofit entities provide secular social services. 


2. Are there any limitations on how faith-based organizations can use the PPP and EIDL loan money they receive? 

Only the same limitations that apply to all other recipients of these loans (such as that loan forgiveness will cover non-payroll costs only to a maximum of 25% of the total loan to a recipient). The PPP and EIDL loan programs are neutral, generally applicable loan programs that provide support for nonprofit organizations without regard to whether they are religious or secular. The CARES Act has provided those program funds as part of the efforts to respond to the economic dislocation threatened by the COVID-19 public health emergency. Under these circumstances, the Establishment Clause does not place any additional restrictions on how faith-based organizations may use the loan proceeds received through either the PPP or the EIDL loan program. 

David Bland

unread,
Apr 6, 2020, 3:57:04 PM4/6/20
to Jone Lewis, Connections
Jone, do you know how to apply for EIDL?  I can't figure it out.

I did apply for Paycheck Protection already through our bank.


FYI, to any of you who use Quick Books Online, they just announced to their customers that you'll be able to apply to Paycheck Protection through them.

Jone Lewis

unread,
Apr 6, 2020, 4:15:58 PM4/6/20
to David Bland, Connections
No, I do not know, David.  I passed this along to our financial person on the board.
Reply all
Reply to author
Forward
0 new messages