There is still time to take advantage of two Federal programs that offer financial relief under the CARES Act: Emergency Economic Injury Loans (EIDL) and Employee Retention Credit (ERC). But you have to act fast! Both are still in effect with action required by Dec 31, 2021 and offer the prospect of free or cheap money to small businesses and non-profits including faith-based organizations. Disclaimer: since we are Stewardship consultants, not tax experts, please verify your congregation’s eligibility, although I believe that many if not all of our congregations would qualify for one or both.
Program Summaries
EIDL is an SBA program that offers low interest (2.75%) 30-year loans which might be a good way to pay off higher interest mortgages or otherwise help provide inexpensive funding during tough times. A simple online application at the SBA website is all that’s required, but you must submit the application by December 31, 2021. Congregations located in low-income neighborhoods may also be eligible for EIDL Advances which are grants. Even if you are not sure you want the loan – or require congregational approval that can’t be secured in the next two weeks – you can go ahead and apply and then decide later whether to take the loan.
The ERC is a refundable tax credit taken against the employer share of social security taxes. There’s no application for this, you just claim the credit (if eligible) on IRS Form 941 for the applicable quarter. A recent change ended the program as of the 3rd quarter of 2021, but I understand that the credit can be taken for past quarters by submitting amended 941s. Eligibility for the ERC requires meeting either of the following:
- A full or partial suspension of the operation of their trade or business during this period because of governmental orders limiting commerce, travel or group meetings due to COVID-19, or
- A decline in gross receipts in a calendar quarter in 2021 where the gross receipts of that calendar quarter are less than 80% of the gross receipts in the same calendar quarter in 2019 (to be eligible based on a decline in gross receipts in 2020 the gross receipts were required to be less than 50%).
Links
The SBA website contains complete information on the EIDL program including the on-line application. From here you can navigate to FAQs including one focused on faith-based organizations:
The following contains a good up-to-date summary of the ERC . The IRS is continuing to update its guidance to reflect the recent changes, so you might check there as well.
Seasons Greetings
All of us at Stewardship for Us bring you warm wishes for a peaceful, joyful holiday season and new year. And we thank you for all you do in support of Unitarian Universalism.
Stewardship Consultant Barry Finkelstein has been a Unitarian Universalist congregational stewardship consultant since the Fall of 2007 and has worked with over 50 congregations on annual budget drives, capital campaigns, and strategic planning. Reach Barry at Team@stewardshipforus.com