Dear Friends,
Greetings in these days of unparalleled challenge. Day by day the news about the Covid-19 pandemic is changing – and not necessarily for the good. Our ministries and schools are trying to understand the impact of the Executive Orders on their work. There is so much that is not yet known. But this is true – God is here. He is here with us and His promise is that He will not abandon us. This is our sure and certain hope.
I am sending this special note to encourage you to give your fullest attention to applying for the Paycheck Protection Program . The window for this opens tomorrow, Friday, April 3 rd , and remains open through June 30 th . I urge you to take the time needed to apply for this now. There is no guarantee that the funds that have been identified for this will cover the great number of applications that will be filed.
Listed below are brief explanations of the four different provisions that are available for you. The links in this document will provide further information. There are also links to the applications for the Paycheck Protection Program and Small Business Administration Grant.
  1. Cash Rebates to American Citizens – This refers to the grant ($1200 for individuals and $2400 for couples) that will begin to show up in online deposits or via US Postal Service in the next 2-3 weeks.
  2. Provisions for Charitable Contributions – For tax year 2020, the cap on charitable contributions is being lifted.
  3. Paycheck Protection Program – Provides a loan that covers payroll expenses and operating expenses through the covered period of February 15 – April 30, 2020. It is repayable over 10 years with 4% interest, and payments deferred for 6-12 months. The good news is that all funds used for the approved expense lines over the 8-week period once it has been received will be forgiven.
  4. SBA Economic Injury Disaster Loan (EIDL) – Part of the Economic Injury Disaster Loan (EIDL) is what many are calling a $10,000 grant for those who submit an application for disaster assistance. It works more like an advance that does not require repayment—whether or not your loan application is approved. In other words, if you meet the qualification criteria to apply for an EIDL loan, submit an application to the SBA, and you will receive a $10,000 advance within three business days—that does not need to be repaid.
Speed is of the essence. Please make the time to review the documents and fill out the forms. Make an appointment with your bank and be certain that you are speaking with someone who has current information. Information needed includes the following:
  • 2018 Financials
  • 2019 Financials
  • List of current payables
  • List of current receivables
  • January, February financials
You will need to calculate the following for the past 12 months: employee wages, PTO, FICA, rents, utilities, and interest on mortgage. Obtain an average monthly figure. Then multiply that average by 2.5 and that's the amount that you may apply for. The bank will likely administer the loans through a draw program through an account at the bank. At the end of the 8 weeks the loan becomes a grant if you don't fire your employees.
If you have questions, we can help direct you to people who are able to assist. On Monday, April 6 th , we will be posting a video segment from a member of our congregation in Winchester, Virginia who has been assisting congregations with this process. If you have questions, reach out to us.
Helpful Documents:
Important Links:
Even as we work remotely, the Southeastern District Staff continues to seek the most effective ways to support our Workers, Congregations, and Schools. Please know that you are being surrounded in prayer as you continue to minister to those around you. And – as always – if you have questions, please reach out to us.
In the royal service of the King,
John R. Denninger, President
Southeastern District, LCMS