Finance and Administration during COVID-19

On this page please find the latest information the Diocese has available for guidance on how to complete the Payroll Protection Program (PPP) loan application to receive a forgivable loan for 2.5x your monthly payroll. Provided you spend 75% of the loan proceeds on payroll and follow the other guidance from your bank, the loan will be forgiven and you will have received two and a half months of payroll courtesy of federal relief. Therefore every congregation and diocesan institution should apply for this relief.

Three Webinars from Horizons Stewardship on SBA PPP Loans

Horizons Stewardship is an ecumenical organization that helps congregations with financial advising and stewardship. They have put out a comprehensive series of webinars and FAQs on the CARES Act. Among the topics covered:

  • How to include clergy housing in SBA loans
  • Specific information on how churches benefit from the SBA loans
  • Liturgical and leadership resources
  • How to ensure that you comply with SBA guidelines and receive forgiveness for your loan

Find the complete website list here:

The following webinars are particularly helpful, and the diocese recommends that church and preschool treasurers and administrators watch them.

To receive more information or assistance about your congregation’s finances, please contact Tom Ferguson, CFO, tomf@diocal.org

For questions about your payroll, benefits, and administration, please contact Sarah Crawford, Payroll & Benefits Coordinator, sarahc@diocal.org

To talk with us about fundraising, stewardship, or planned giving, please contact Davey Gerhard, Director of Development, daveyg@diocal.org

 
**Update: Union Bank will not be accepting SBA Payroll Protection Plan applications from non-customers.**

 

Form 941 Request from Your Bank

Your bank may ask you for a Form 941, which is a payroll tax return, to verify your payroll numbers. The Diocese however submits a single Form 941 for the 643 or so employees in its payroll service, so you will not able to provide a 941 for your individual congregation or institution.

Instead, please refer your bank to the FAQs document issued by the Small Business Administration, particularly questions 1 and 10 and provide the following language:

  • Question 1 emphasizes that the calculation of the payroll costs is the responsibility of the borrower, and deems “a payroll report by a recognized third-party payroll processor” as an example of reasonable documentation. 
  • Question 10 recognizes that some employers use a third-party payer to process payroll. “In these cases, payroll documentation provided by the payroll provider that indicates the amount of wages and payroll taxes reported to the IRS by the payroll provider for the borrower’s employees will be considered acceptable PPP loan payroll documentation.” Tax forms are of course acceptable if available, but they are not required.
  • And as you know, the borrower must certify the accuracy of the information it is submitting.
  • We therefore ask that you rely on this SBA guidance and accept the payroll register reports that are specific to our congregation’s employees.

More Pandemic Resource Pages: