How your church can apply for PPP Loan forgiveness
If your church, school, college, or camp received funding from the Paycheck Protection Plan funding via the CARES Act, you’ve undoubtedly been looking for guidelines for how to apply for forgiveness of your loan.
If your loan was for $50,000 or less, there’s good news! On October 8, the SBA and Treasury announced simpler PPP Forgiveness for loans below that threshold. Restrictions have been lightened to allow lenders to process forgiveness applications more swiftly.
Your lender is likely keeping you apprised of changing due dates, extensions, and forgiveness criteria. They should be your primary source for information because many of them have set up their own systems and guidelines not only for filing but even for calculating how much of your loan qualifies for forgiveness, so be sure to ask.
But we also recommend that you discuss your PPP loan next steps with a financial advisor that specializes in church finance.
Now is the time to be gathering your documentation to apply for forgiveness and ensure you are familiar with the latest guidelines. View this checklist with the 6 steps you will need to take to apply.
Here are a list of additional resources you might find helpful:
- SBA’s Paycheck Protection Program – to view all updates to the plan since its origin
- US Treasury and SBA FAQs
- PPP Loan Forgiveness – A Summary of Available Guidance [NonprofitCPA]
- Free Personal & Church Finance Resources for Ministries During COVID-19 [GuideStone]
- PPP Loan Forgiveness Application (Form 3508)
- PPP Loan Forgiveness Application Instructions [SBA]
- EZ PPP Loan Forgiveness Application (Form 3508EZ)
- EZ Loan Forgiveness Application Instructions