CARES

PPP Borrower Information Fact Sheet
Paycheck Protection Application and Checklist


Summary:

• Loan amount provided is the average monthly payroll from 2019 x 2.5
• For the debt to be forgiven, at least 75% of the amount has to be used for payroll with the other 25% able to be used for rent, utilities and mortgage interest
• There are no payments on the loan for 6 months
• To have debt forgiven, you have to employ staff at the levels and amounts of 2019 to qualify.  There are provisions to hire back if you have already laid off
• Forgiveness will be submitted to the Bank with supporting documentation of the use of funds
• If not forgiven, the debt is paid back over 18 months at 0.50%.  THIS COULD BE A BIG PAYMENT IF NOT UTILIZED CORRECTLY.  PLEASE UNDERSTAND THIS.  

 
Application Process:

• Applications start on April 3, 2020. It is recommended to apply by April 8.
• Bookkeepers/Business Managers, work with your Pastor and Finance Council on whether your parish should apply (Principal and School Board for schools).  It is our recommendation that most parishes/schools should apply. 
• Note that you do not need to file a diocesan resolution for this borrowing!
• Work with an Approved Lender for this program.  Start with your local bank/lender to ensure they have full authority from the SBA to implement the loan.
• The loan application is to be initialed and signed by the borrower.  Your Pastor will be the signer on the application.  Please ensure you submit a fully completed application with ALL the required supporting documentation.  This ensures a delay or possible denial of the application will not occur.
• There are specific guidelines to the program and payroll needs to be accounted for.  PLEASE READ THE DIRECTIONS ON PAGE 3 OF THE APPLICATION AND FILL OUT BASED ON DIRECTIONS.

 
The below will need to be gathered.  Your lender may have additional information needed also:

• All Form 941’s or W-3 for 2019
• Payroll Detail Report or All State Unemployment Reports for 2019 (parishes will not have unemployment reports, we assume the detail report is the payroll summary however work with your lender on the specific documentation needed)
• Documentation of Employee benefits other than those paid thru payroll.  Payments may contain but not be limited to group health care benefits including insurance premiums; and payment of any retirement benefit.
• Payroll Detail Report thru 2/29/2020

 
Please also be aware of the documentation and requirements for the loan forgiveness.  The following is direct language from www.sba.gov on the forgiveness: 

• The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
• Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
• This loan has a maturity of 2 years from the date of the loan and an interest rate of .5%.

 
Finally, please ensure you fully read and understand the certifications you are attesting to in the application on Page 2. 
Note that we are simply providing this for your information.  Please address any questions with your local bank/lender.
Please notify the parish accounting office of any approved loans.  Remember you will need to record this on your balance sheet as a loan payable when the funds are received!
Please contact Julie  Mahaney with any questions:
Julie Mahaney
Parish Accounting
Diocese of Sioux City
712-233-7515
juliem@scdiocese.org

Charitable Giving Information:
Congress passed the new CARES (Coronavirus Aid, Relief, and Economic Security) Act designed to help you through the economic hardship caused by the coronavirus global pandemic.  Here are a few of the key provisions of this new law as it relates to philanthropic support.   

• The new law temporarily suspends the requirements for required minimum distributions (RMD) for the 2020 tax year. This probably comes as a relief to many people who would have had to withdraw a greater percentage of their retirement accounts. Many donors use their RMD to make a gift from their IRA. If a donor is 70½ or older, they can still make a gift from your IRA or name us as a beneficiary. In addition, there are some new ways you can receive financial benefits and help organizations like us.
• The new law allows all taxpayers to take a charitable deduction of up to $300, even if you do not itemize. You might think that this is a small amount and would not make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact on those we serve.
• For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as ours to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.

Please tell your donors to always consult with their tax professional about their charitable giving decisions, especially with these new provisions from the CARES Act.