By: Sheri Meister, president and CEO, Dakotas United Methodist Foundation and Jeff Pospisil, executive director of Finance and Administration, Dakotas UMC

To apply for forgiveness of your Paycheck Protection Program (PPP) loan, as a borrower, you must complete this application as directed in these instructions and submit it to the bank who loaned you the money. You may also complete this application electronically through your bank.

How to submit documentation to your bank to receive forgiveness and have the money as a grant—follow these steps today!!

1)  Gather this information:

• Original Payroll Protection Program loan application
• Loan Agreement paperwork

• Records of operations expenses for past 8 weeksHistorical payroll records
   

2) Complete PPP Loan Forgiveness Calculation Form

Questions to consider:
How much of my loan will be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll. Here are some things to note:

• Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
• Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019. 
•  Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020. 

 How can I request loan forgiveness?
Submit a request to the lender that is servicing the loan.

The request will include:

• Documents that verify the number of full-time equivalent employees and pay rates.
• Payments on eligible mortgage, lease, and utility obligations.

What is the appropriate date to use for determining when the 8-week period starts?
The date the loan is disbursed, and funds deposited to the organization’s account. 

If our church is on a monthly payroll cycle, can we use PPP funds disbursed mid-April to fund the entire April  payroll? 
Yes, with supporting information and guidance from your bank, costs over the eight-week period are eligible. 

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Resources: 

Video: How does your church apply for PPP forgiveness? View or download here
For one-on-one assistance contact:

• Jeff Pospisil, Dakotas Conference Finance Office, e-mail, or call 605-990-7786.
• Sheri Meister, Dakotas UM Foundation, e-mail, 605-990-7790.
• Contact your local lender directly for specific instructions.