What the New Coronavirus Stimulus Package Means for Churches

By Church Law & Tax

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PPP Second Draw Loans
A prior recipient of a PPP loan may apply for a PPP Second Draw Loan, but must meet the following criteria:

  • Employ no more than 300 employees (changed from 500 employees previously)

  • Reduction in gross receipts greater than 25%

  • Not engaged in political/lobbying activities

  • Not publically traded

  • Limited connections to China (see specifications)


Forgiveness of PPP loans of $150,000 or less

Covered period redefined

Qualifying expenses expanded

Pandemic Unemployment Assistance

Emergency paid sick leave (CARES Act)

Employee Retention Credit Extended

Individual Impacts

  • Individual stimulus payments - $600

  • Paid family and medical leave credit extended

  • Student loan payment exclusion extended

  • Charitable contribution deduction extended to non-itemizers

  • Charitable contribution limitations modified

  • Healthcare and dependent care Flexible Spending Accounts may carryover

  • Teacher deductions for personal protection equipment and supplies

  • Assistance with COVID 19 – related funeral expenses



Photo by Bill Oxford on Unsplash