Update [2/22/2021]: GCFA has updated the Frequently Asked Questions for FFCRA (Family First Corona Virus Response Act) and, with Wespath, for the 2021 PPP Loan Extension Under Consolidated Appropriations Act.
Update [5/8/2020]: Two new PPP FAQ documents have been issued and added to this page, one from Wespath & GCFA and the other from the Small Business Association (SBA).
- The Loan Forgiveness Guide provided by Wespath & GCFA is a rich resource responding to several common questions that will allow our churches to correctly apply for forgiveness of the PPP loan.
- The SBA FAQ contains several clarifications on all aspects of the loan process, including the applicability of the housing allowance.
Perhaps a silver lining in our situation with COVID-19 Coronavirus is how the Connectional nature of our United Methodist Church is once again reflecting the communal nature of our God. Our California-Pacific Annual Conference, its Conference Boards and Committees, and with advice from our General Church, have all been hard at work developing resources to support and guide our local churches in a constantly changing ministry environment. Below are a list of actions taken and resources prepared keeping your leadership of the local church in prayer.
Be the Hope,
Bishop Grant J. Hagiya
Los Angeles Area Resident Bishop
Board of Pension & Health Benefits Waives Local Church Pension & CPP Obligations
The Board of Pension & Health Benefits announced a decision to suspend billing of the following three items for the months of April, May and June, 2020: CRSP DC, CRSP DB and CPP. The Board has updated their initial announcement with clarification on the impact of the billing relief on the payroll costs of the church when applying for a loan under the Paycheck Protection Program.
Conference Board of Pension and Health Benefits Votes to Pass CPP Premium Holiday on to Churches
The Conference Board of Pension and Health Benefits, under the leadership of Barbara Roberts, Board Chair, has voted that for July, August and September, this holiday from CPP premiums will be passed on to churches. The churches will not be billed for CPP in July, August and September.
Congregational Loan Payments will be Interest Only for 4 Months
The Executive Committee of Council on Finance and Administration has approved postponement of existing Loan payments of Principal for 4 months with a 2-month extension if needed. Interest only payments will be required each month. Principal will not be reduced during this period of interest only payments nor will it be increased.
Families First Coronavirus Response Act [FFRCA]
FFCRA requires certain employers to provide new, and temporarily available, paid leave to employees who are impacted by COVID-19-related issues in certain ways.
Coronavirus Aid, Relief and Economic Security (“CARES”) Act
The CARES Act is lengthy legislation intended to “provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.”
- Expanded Unemployment Benefits – provides payment to individuals not traditionally eligible for unemployment benefits, and provides enhanced benefits for all workers eligible for unemployment.Learn More
- Small Business Loans under the Paycheck Protection Program (PPP) – Administered by the Small Business Administration (SBA), the CARES Act makes it clear that 501(c)(3) organizations, including churches, are eligible to receive loans through the Program. Forgiveness of the loans will be available under certain conditions.
- PPP Checklist
- PPP Letter from LBMC – Resource from General Council on Finance and Administration: a letter from LBMC, with an email address to help with your questions.
- PPP Loan Application Tool for UMC Local Churches – Wespath’s Legal Department partnered with the General Council on Finance and Administration (GCFA) Legal Department to create a tool for United Methodist Church local churches to use in completing loan applications for the Paycheck Protection Program (PPP) under the CARES Act.
- Church Eligibility to the PPP – From Wespath, an FAQ from the Small Business Administration (SBA) on whether churches might qualify for SBA loans, assisting you with clarification to a lender and application for the loan.
- PPP Application Flowchart – Adapted from another Annual Conference, an overview of the three phases of the PPP loan process listing requirements for forgivability of a church loan and recap of the income and expense items that may be on the church’s financial statement during this time.
- CARES Act Update
- CARES Act FAQ – On Friday, April 3, 2020, the SBA issued clarification, in the form of frequently asked questions, that religious organizations, including churches, are eligible for Paycheck Protection Program (PPP) loans under the CARES Act.
- Loan Forgiveness Guide – Provided by Wespath & GCFA, a rich resource responding to several common questions that will allow our churches to correctly apply for forgiveness of the PPP loan (April 28, 2020)
- SBA PPP Loans FAQ – Frequently asked questions about PPP loans containing several clarifications on all aspects of the loan process, including the applicability of the housing allowance (as of May 6, 2020)
- 2021 PPP Loan Extension Under Consolidated Appropriations Act FAQ (January 21, 2021)
- Community Commerce Bank – To apply, please fill out the application form and submit it to Community Commerce Bank, and include other required documentation. Upon filing your application, send an email to Cory Marquez at cmarquez@TELACU.com. He is assigned as a support to our churches.
- United Methodist Federal Credit Union
California-Pacific United Methodist Foundation Grants
The Cal-Pac UM Foundation has a number of grants available (Clergy Continuing Education, Urban Ministry, Church Growth, Senior Adults, Children, At-risk Youth) to assist local churches in their ministry endeavors.
Learn More (information to be posted on April 10, 2020)
Guidance on New Laws
An Interim Final Rule from the U.S. Small Business Administration on Business Loan Program Temporary Changes; Paycheck Protection Program.