Last Updated: January 19, 2021
Jan. 19, 2021
Additional information has been released by the SBA regarding forgiveness, though we are still awaiting a final forgiveness form which should be published yet this week. However, for those churches and organizations that have not yet filed any forgiveness application or forms, please follow the instruction below that is most appropriate to your circumstance:
A. If your church or organization has a PPP loan UNDER $50,000 and had NO reduction in staff after your loan disbursement, you can complete the form found at this link > PPP Loan Forgiveness Application Form 3508S
Once completed and signed, send us the form along with any documentation supporting the expenditures for your PPP Loan Proceeds (examples would be payroll reports, copies of check stubs, or bank statements). Drag and drop all file to our secure file portal at the bottom of this page. Do not submit through the LoanStreet portal you may have used before.
— OR —
B. If your church or organization has a PPP loan OVER $50,000 but under $150,000 — OR — your loan is under $50,000 and you had a reduction in staff, then please wait a few days for the final form to be released. This final version will allow you to apply for forgiveness allowing for the limitations cited above. We will post that final form here as soon as it becomes available – as early as the end of the week.
Jan. 7 2021 – IMPORTANT UPDATE
A new and hopefully final version of the PPP loan forgiveness form will be available sometime in late January. Additionally, the rules on who can use the short form have also been relaxed, and final rules should be available around the same time as the new form. Check back regularly for any updates. Program participants are urged to use the new form when it becomes available.
The information below is now for informational use only.
For all PPP Participants:
At the end of October, your church or organization will be receiving, by email, a loan addendum for electronic signature. The SBA recently recognized that there was significant confusion concerning due dates, covered periods, and forgiveness rules. Accordingly, they are allowing loan modifications to give everyone plenty of time to use their PPP proceeds and to file for forgiveness.
This addendum will extend your deadline to seek loan forgiveness (or begin repayment), until June 19, 2021. Accordingly, we are advancing everyone’s due dates to that date. No payments will be due until then.
Important Note: This addendum will be sent to the same person for signature as the original loan document. If this person has changed for any reason – please notify us by email at firstname.lastname@example.org.
For Churches & Organizations With PPP loans under $50,000:
Good news – The SBA has implemented a much simplified procedure for your PPP loan forgiveness! The form is relatively easy to complete and has a less rigorous documentation process (no spreadsheets or difficult calculations).
Steps to complete the forgiveness process:
1. Download and complete the new forgiveness form.
2. Have the appropriate party sign the form and scan or photograph it.
3. Gather whatever files you’ll need to support your application.
4. Drag and drop your electronic files using the the secure “drop box” below (or email to email@example.com).
5. We will review your application for completeness.
6. We will then submit your forgiveness application to the SBA .
Do not try to submit or send these items the SBA yourselves! There is a special way in which they are to be submitted, and we will also want to review them so you have the best chance of success (much like the original application for the loan).
FOR CHURCHES & ORGANIZATIONS WITH PPP LOAN OVER $50,000:
While the SBA has not taken this process simplification beyond the $50,000 mark (yet), we remain hopeful that they may yet increase this further. Therefore, we ask you to be patient and wait a bit before having us formally submit your forgiveness application. To preserve your flexibility to do this, please be sure and sign the new addendum as outlined above.
FOR CHURCHES & ORGANIZATIONS THAT STILL NEED MORE FINANCIAL ASSISTANCE:
We remain hopeful that after the November elections are over (no matter which way they fall), Congress will be much more amenable to greater economic assistance perhaps including another round of PPP-like financing for our churches and organizations.
However, TUMCU still stands ready to assist you with low-interest emergency loans should they become necessary. Additionally, we have recently added Rev. Burt Brooks to our team to assist churches with their stewardship efforts. His services are free to our members, and we highly recommend you contact him for assistance, which can be done at https://www.tumcu.org/stewardship/.