Recording Available, Improving Your Cash Flow

We had a great group participate in our webinar this morning.  They appreciated the information about not only assessing your situation but how to put on their fundraiser hats and move the mission forward.  If you have questions or seek more information, please reach out.

The video is one hour and 15 minutes and can be viewed here

Please feel free to share the link with others who might benefit from it.

The document we refer to can be found here

The Power Point for Brian’s part of the presentation is here

Kristi shared some great information about the Small Business Administration forgivable loan program.

She writes:

The amount of money available for forgivable loans for 8 weeks of payroll, rent, mortgage interest, and utilities is only $349 Billion. That seems like a high amount. However, it is anticipated that demand will be higher. Loans will be made on a first come/first served basis. Getting the application in immediately to an existing SBA7(a) lender tonight is essential, because the SBA is opening to applications on April 3rd.

Here are the best sources of information that I have found about this payroll relief:

Eligibility Verification Tool:
US Treasury Information (continuously being updated)
Wespath Summary of CARES
ECFA Webinar Outline – CARES Act Provisions Relevant for Nonprofits

The loan application is very straightforward requiring minimal information – you need 4 things to get started.

Who can be your authorized signer? It should be a the Trustee Chair, but if another trustee signs that would be fine.

The church’s legal name. Best bet is to check the Secretary of State records. All four states that we serve have online access for this. Search Secretary of State Business Registration and your state name. Look up the name of your church to see what the office name is.  Brian’s Note:  For Ohio churches here’s the link:

The church’s federal EIN number (9 digits – looks like this 12-3456789) (this is NOT the sales tax exempt ID or the State registration number).

Sum total of employee expenses for 2019: Everything: benefits, employment taxes, paid time off. (It is unclear if pastor housing allowance is included, but I would add it for now. I have seen nothing that includes or excludes this.)

Here is what needs to happen as soon as possible:

Calculate the maximum loan amount:
2019 total payroll (including all salary, taxes, paid time off, and any benefits).
Then divide by 12 – this is your Average Monthly Payroll
Then multiply by 2.5 – this is the Loan Amount (maximum).

Fill out application, print and sign – click here

Scan, fax, or email to your SBA7(a) lender tonight.
Then the lender will have documentation that they require.

We know this seems almost too good to be true, especially because religious organizations have never been offered any form of assistance like this. Some are considering this a serious breach of separation and state. Others view this as disaster relief like what they would receive from FEMA after a natural disaster like a hurricane. Each church will need to decide.

But while you are deciding, at least you can hold your place in line by submitting an application this evening or early tomorrow.


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