What churches need to know about the new round of PPP loans


When the recent $900 billion COVID relief bill was signed into law, the federal government also approved a second round of Paycheck Protection Plan (PPP) loans for small businesses – including churches and other non-profit organizations.

This means some South Georgia United Methodist congregations are eligible for another round of PPP loans. This second round of PPP loans is similar to the first, but does have several important differences. Loans will be available to first-time qualified borrowers and to businesses that previously received a PPP loan, provided they meet several requirements. If churches did not file for an original PPP loan, the Consolidated Appropriations Act of 2021 allows them to file for one now, under the original rules. One major factor to consider is that to be eligible for a Second Draw PPP Loan, the borrower must have experienced a revenue reduction of 25 percent or greater in 2020 relative to 2019.

“Unlike most Small Business Administration loans, the Act specifically provides that churches and other non-profit organizations are able to qualify for these loans,” said Dr. Derek McAleer, Director of Administrative Services. “Many of our churches found the PPP loans to be a great help in 2020, as they cover both salaries and utility expenses. Some may benefit from a second round, if they meet the requirements.”

Designed to provide economic relief to small businesses, churches, and non-profit organizations, this second round of PPP loans also provides funds for expenses outside of just payroll. These additional funds are one of the major differences between the original PPP program and the new one.

For more information, speak to your local banker. Some churches may find the UM Connectional Credit Union to be of assistance.  

United Methodist Connectional FCU prepares for the second round of the PPP
UMC FCU is continuing to prepare to help United Methodist Churches in the administration of the Paycheck Protection Program. We are awaiting notice from the Small Business Administration and Treasury Department for when we can begin processing applications. At that point, we will open an online portal for ease of process and communication. As you have questions, please contact Jonathan Curtis at jonathanc@unitedmethodistcu.com. UMC FCU is an exclusive credit union for all members of the United Methodist Church in the North Georgia, South Georgia, Florida and Alabama-West Florida Conferences of the United Methodist Church.