How Churches Can Apply for Coronavirus Disaster Loan Assistance With CARES Act 2020
Not surprisingly, media coverage has been focused on the devastating impact the Coronavirus (COVID-19) is having on small businesses. Millions of Americans are suddenly out of work as small businesses are forced to close for weeks and possibly months.
Churches and nonprofits may get less press coverage but they are equally impacted by the sudden ban on larger gatherings and subsequent loss in revenue. And there’s no doubt the closures will extend well past Easter.
Thankfully, with the passage of the CARES Act 2020 (S.3548) small businesses, churches, and nonprofits may apply for a low-interest loan to help alleviate economic injury caused by the Coronavirus.
Economic Injury Disaster Loans Offer Millions of Dollars in Assistance
Details are still becoming clear but it appears the loans offer up to $10 million in assistance.
Small businesses, churches, and nonprofit are eligible to receive 2.5x payroll to use for things such as payroll, rent, utilities, and health care benefits.
The interest rate varies between 1 – 5% based on the size of the loan. Long-term repayment plans are offered in order to keep payments affordable, up to a maximum of 10 years.
You may also qualify for $100,000 in loan forgiveness. Once the funds hit your account, you have 8 weeks to use it for payroll, utilities, rent, and other qualifying expenses. If you do that, then the full amount is eligible for loan forgiveness at the end of the 8 weeks. (Source)
- CARES Act Economic Relief Plan
- SBA Disaster Assistance in Response to the Coronavirus
- Coronavirus (COVID-19): Small Business Guidance & Loan Resources
- How Your Business Can Take Advantage of the $2T Stimulus Package
Apply for Disaster Relief Assistance Now
Interested small businesses, churches, and nonprofits can apply online at: https://covid19relief.sba.gov/
Applicants should have their most recent federal income tax return and a completed and signed IRS Form 4506T, which authorizes the release of tax information. Online applications are preferred, but organizations can also call 1-800-659-2955 and request a paper application by mail.
Vision2 Is Here to Help
Vision2 is a comprehensive giving platform that helps churches connect with their congregation in the same engaging, welcoming way they would in person. We’ve put together some helpful tips for your church during the crisis:
- Urgent Tips to Prepare Your Church for the Impact of Coronavirus
- Love Thy Neighbor: Caring for the Elderly During the Coronavirus Pandemic
- 8 Ideas for Spreading Joy and the Gospel during the Coronavirus Pandemic
- Coronavirus, the Church & Online Giving: 12 Crucial Tips During a Crisis
Please contact us if you would like to learn how we can help your church reach its full giving potential.
Only Vision2 truly supports GIVING WITHOUT LIMITS … No contract; No monthly fees; No limit on Support; No limit on # of Users; No limit on Transactions; No limit on the Donation amount; No delays in receiving your money.
And therefore, NO LIMITS to the GROWTH of your … Number of givers; Total amount of Gifts; Church Outreach; Church Missions; Church Impact; and much, much more!