CARES Act and PPP Loan for Deermeadows
June 8, 2020
Many of you have heard of the CARES Act and the special Small Business Administration loans, called Paycheck Protection Program loans, provided by the federal government in late March. This loan program is intended to provide much needed funding for employers to continue pay for their employees during the shut-downs and quarantine conditions. One significant advantage of this loan is that it is 100% forgivable when the organization meets certain conditions and uses it primarily for payroll costs.
As a small business and since this program included non-profit organizations, Deermeadows was eligible to participate. On April 2, a special meeting of the Finance Committee was held and approved making application for the PPP Loan. The application was submitted as soon as our local bank’s process was in place. Additionally, the committee approved continuing pay for all employees, whether able to work or not, through the month of April. Deermeadows employees nearly eighty people in ministry, support and weekday preschool. Pay for employees is provided in the church general budget and the weekday preschool budget.
In the days following, stories began to emerge about companies receiving their funds, while Deermeadows continued to wait for word our application had been approved. Soon word came that all the allotted funds had been dispersed and Deermeadows had not received the loan. Meanwhile, you continued to give and give generously. Expenses were being controlled, and the Finance and Personnel Committees agreed to continue pay for all employees another month.
As congress began to consider another round of funding, we began to assess our financial position and consider the reserves we have on hand. We truly did not want to take government funding, potentially denying another company in greater need, when we could sustain operations and keep our employees whole for the next few months.
On Sunday, April 26 the church officers and Finance Committee decided to withdraw our application for the Paycheck Protection Program Loan. In the letter to the bank, we stated, “Our church, through the faithfulness of its donors, has been able to maintain a positive financial position through these last few weeks. At this time, we have faith that this trend will continue, and this assistance will not be necessary to sustain our ministries. Our hope is our withdrawal will free up funding for another small business employer in our community.”
Please continue to pray for the finances of the church and for wisdom of the committee leaders and staff. God has proven himself in the history of Deermeadows and we continue to serve Him in this community. Our God will supply all our needs, and He will sustain us through this time. If you have any questions or concerns, please feel free to contact Bob Higginbotham, Finance Committee Chairman, or Tammy Benedict, Church Administrator.