COVID-19 Legislative Update—CARES Act
On Friday, March 27, 2020, the President signed a "Phase III" response and economic stimulus package into law aimed at countering some of the economic impacts of the Coronavirus disease ("COVID-19") pandemic in the United States. A preliminary summary of the CARES Act is available. Full text of the package is also available here.
Some of the provisions have direct applicability to local churches, annual conferences, and other tax-exempt employers associated with The United Methodist Church (UMC).
Wespath's Legal Department worked with colleague lawyers in the Church Alliance to create this summary of some of the important provisions of the Act as an information source for our stakeholders across the Church.
With the recent passage of the stimulus package known as the CARES Act, and within it the Paycheck Protection Program. Funds may be available for your church to help weather this storm. While we do not like to see churches borrow funds for normal operating expenses, these are not normal times. As it is presented, this loan can be forgiven and become a grant to you, if you carefully and exactly follow all the rules. This is a fast moving and fluid situation and as more information is available and clarifications are made, we will share updates with you as soon as we can. If you plan to apply for the loan program, indications are that this pool of $349 billion dollars will go fast so if you choose to do this, act quickly. It is anticipated that the SBA will finalize the application some time on Friday April 3.
Q&A on the CARES ACT from The General Council on Finance and Administration