Faithfully serving churches and Christians with sound legal counsel for over half a century.

You are in our prayers, and we are seeking God’s face during this unprecedented time in our nation’s history. While the world is fighting an unseen foe, we serve a Creator greater than all. Your needs and great burdens have been at the forefront of every one of our actions. We are here for you. Please call us anytime at 888-252-1969. As many businesses are facing incredible financial challenges in the wake of the COVID-19 pandemic, churches and nonprofit organizations are, likewise, bearing heavy financial burdens and looking for other suitable means of funding. One major source of relief available to churches and non-profits is in the form of disaster funding from the Small Business Administration (SBA). As part of its disaster assistance program, the SBA is providing low-interest, working-capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus in Presidential and SBA-declared disaster areas. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years. How Funding May Be Used? SBA loans may be applied to cover accounts payable, debts, payroll, and other bills the coronavirus has affected your organization’s ability to pay. Steps to Apply for Funding Create an account online at disasterloan.sba.gov. Confirm your organization’s financial information and upload it to the site. Complete the submission. Receive confirmation for funding. Information Needed to Apply Business Loan Application (SBA Form 5) completed and signed by business applicant. IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management). Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available. Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member. Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used). Additional Information That May Be Necessary To Process Your Application: Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management. If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable. A current year-to-date profit and loss statement. Additional Filing Requirements (SBA Form 1368) providing monthly sales figures. For more information on SBA loans, disaster relief, and/or the loan application process, please visit: https://www.sba.gov/page/coronavirus-covid-19-small-businessguidance-loan-resources https://disasterloan.sba.gov/ela/Documents/Three_Step_Process_SBA_Disaster_Loans.pdf Other State and Local Relief In addition to the SBA loans, state governments are providing funding through state economic disaster funds aimed at stabilizing small businesses throughout the country. States and municipalities are adding programs by the day. Check your governor’s website for up-to-date information about relief available in your area. The National Governors Association offers a list of governors’ websites. Additionally, many banks have offered deferment and forbearance to business loan customers having trouble making payments. Check Forbes’ list of banks offering relief. You can also search for your bank on the American Bankers Association’s ongoing A-Z list of coronavirus response programs. New Federal Unemployment Stimulus Update! As part of the COVID-19 stimulus bill recently passed by Congress regarding federal expansion of unemployment benefits, coverage will extend to employees not previously covered by state and federal unemployment law. Under Section 2101 (c)(1) of the legislation, unemployment benefits shall be available to “a covered individual…as long as the covered individual’s unemployment, partial unemployment, or inability to work caused by COVID-19 continues.” The bill further broadens the applicability of coverage by defining a “covered individual” as an individual who is not already eligible for or who has exhausted any regular unemployment compensation or extended benefits under State or Federal law, or pandemic emergency unemployment compensation. Therefore, under the new legislation, employees of churches and nonprofits who are laid off from work due to the COVID-19 pandemic, and who were not previously eligible to receive unemployment benefits, are now included as “covered individuals.” The law does require an individual claiming newly-afforded unemployment benefits to substantiate through “self-certification” that the individual is otherwise able and available to work but for being out of work due to causes related to the COVID-19 pandemic. Related causes include: individuals diagnosed with or symptomatic of COVID-19 and awaiting diagnosis, individuals with members of their household having been diagnosed with COVID-19, individuals caring for persons diagnosed with COVID-19, individuals unable to reach the place of employment due to state or federal quarantine orders, and individuals who have been forced to quit their job as a direct result of COVID-19. The new legislation does not apply to those employees currently receiving paid sick leave or other paid leave benefits. We are with you in this. If you or your ministry has any questions in determining how best to respond in this complicated time, please contact our office by phone at 888-252-1969, or by email at info@christianlaw.org.