Secure Approval Before Applying for PPP Loan
Dear Clients and Friends,
The church world is a buzz with webinars and emails about the SBA loan program called the “Paycheck Protection Program.” Without a doubt this program will help many churches and nonprofits across our country hurting due to falling donations.
But please review your governing documents: Articles of Incorporation, Constitution and Bylaws and determine if you need to secure the approval of your membership or Board of Directors for this level of indebtedness. Please note the Paycheck Protection Program first and foremost is a loan. If the church Board has authority to put the church in debt then have a meeting approving the loan application and document it in your Board minutes prior to submitting it to your lender for processing.
I hope this information assists as you lead and do the Lord’s work.