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Church Software Covered Under PPP2 Funds

As of January 8, 2021, you need to contact your lender about applying for PPP2 [Paycheck Protection Program] funds. 

Don’t wait!

We gathered this information from various sources*, so please check with your accountant or lawyer for confirmation or clarification of the following information.

Important Information regarding PPP2 funds:

  • If you didn’t get PPP1, you are still able to get PPP2 funding.
  • PPP2 is only available to organizations with under 300 employees (dropped from 500).
  • You must have used all your PPP1 funds (if you received them).
  • You will need to show a 25% reduction in at least one quarter of 2020 compared to 2019.
  • 501(c)(3) can be split. For example, a church and school under the same 501(c)(3).
  • The last day to apply currently is March 31, 2021. (As with PPP1 this will most likely move).
  • If you’re using the same lender, you can use the same documentation as submitted for PPP1. You will need to check with your lender as additional information may be requested.
  • There is a new application for loans under $150K (yet to be released).

Forgiveness:

  • Forgiveness for PPP2 funds will be the same as PPP1, but additional guidelines will be forthcoming.
  • You must use at least 60% of the loan for payroll costs (employer-paid amounts only) within 8-24 weeks of receiving a loan or there will be a reduction in forgiveness.
    • Payroll costs include compensation, wages, group health insurance, housing allowance, state and local taxes, as well as paid sick leave. 
  • You can use the other 40% on:
    • Covered operational expenditures: Payment for any software, cloud computing, and other human resources and accounting needs.
    • Covered property damage: If it relates to public disturbances that occurred in 2020 and were not covered by insurance.
    • Covered worker protection expenditures: PPE [personal protective equipment] and adaptive equipment/investments to help a loan recipient comply with federal health and safety guidelines or equivalent state and local guidance related to COVID-19 during 3/1/2020 until the end of the national emergency declaration.

Download your quick checklist to ensure you follow the needed steps for getting PPP2 funds! 

Please bookmark acst.com/church-growth or sign up for our blogs as we continue to provide you with the most up-to-date information and resources to help your team and church continue thriving during the COVID-19 pandemic and beyond.

*SBA.com, Journal of Accountancy  and Vanderbloemen


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1 thought on “Church Software Covered Under PPP2 Funds”

  1. Pingback: Time’s Running Out: Use PPP2 Funds for Realm® | Church Growth Blog by ACS Technologies

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