The PPP Loans are back because of the recent stimulus bill passed. For churches that are struggling financially because of this pandemic, you should consider applying. You can apply starting on January 13, 2021…assuming your bank is setup to accept the applications.
If you never applied in 2020, but now you think you need to, there isn’t a real test to see if you are eligible. You just have to be concerned if the pandemic is going to make it difficult to pay all your bills without making cuts. Like most “free” money from the government, you will pay in paperwork. In this case, the stress comes mostly during the forgiveness process. I haven’t heard of a single church having their forgiveness application rejected, but it was stressful
If you are applying for a second PPP Loan, there is an actual test. You will have to see if gross receipts for a quarter (Jan – Mar, Apr – Jun, Jul – Sep, or Oct – Dec) dropped by 25% or more from 2019 to 2020. It sounds like you will have to provide some kind of proof. I’m guessing a Profit and Loss or Statement of Activities report should do the trick, but I haven’t seen what banks are asking for exactly.
- PPP Loan Application – Second Draw: https://www.sba.gov/sites/default/files/2021-01/PPP%20Second%20Draw%20Borrower%20Application%20Form%20%281.8.2021%29.pdf
- PPP Loan Application – First Time: https://www.sba.gov/sites/default/files/2021-01/PPP%20Borrower%20Application%20Form%20%28revised%201.8.2021%29.pdf
- My original PPP Application Post: http://jctaccounting.com/2020/04/02/how-churches-can-apply-for-the-paycheck-protection-program/