Federal Funding Available for Churches

This resource is to inform you of two loan options for nonprofits and churches, provided through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law by President Trump on March 27, 2020. While we never encourage ministries to take out a loan that is not needed, these provisions are available for churches that have experienced a severe downturn in giving and are struggling to maintain financial obligations. CEP recommends pastors and ministry leaders familiarize themselves with the two options and, if needed, apply (to one or both) immediately.

Payroll Protection Program (PPP)

The Payroll Protection Program provides 501(c)(3) nonprofit organizations with 100% federally backed loans, up to $10 million, to cover payroll costs for the period of February 15 through June 30, 2020. Funds may also be used to pay interest on mortgages, rent, and utilities. Applicants must have fewer than 500 employees to apply, and employers who maintain employment between March 1 and June 30, 2020, are eligible to have their PPP loan forgiven.

The application process begins on April 3, 2020, and funds are limited. Starting April 10, independent contractors and self-employed individuals can also apply for and receive loans from existing SBA lenders to cover specific expenses like payroll. If you would like to seek funding for your church, you should apply immediately. For additional information, please refer to the ECFA Summary and Info from the US Treasury.

To apply for a PPP loan, click here: PPP Application (must be submitted to a qualified SBA bank or credit union in your area)

Economic Injury Disaster Loan (EIDL)

Because of the COVID-19 pandemic, 501(c)(3) nonprofit organizations are eligible to apply for an Economic Injury Disaster Loan (EIDL), which is paid directly by the SBA. Applicants can request an advance up to $10,000, to be distributed in three days (this loan advance may be forgivable). These funds can be used for paid sick leave, payroll costs, mortgage, and more.

To apply for an EIDL and for additional information, click here: EIDL Application

We are here to serve you!

Through the COVID-19 crisis, CEP is committed to walking with your church as you not only trust in the Lord but also seek to be wise stewards. If you have questions, please call or email our team at 800-821-1112 or helpdesk@cepnet.com. Our ministry consultants are collaborating with leading financial experts and are ready and able to assist you!

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Disclaimer: Church Extension Plan does not assume any liability for the materials, information, provided by those organizations or the Federal Government which we link you to.