At the recommendation of a joint task force convened by Bishop Hughes, on April 1st the Trustees and Diocesan Council approved an emergency loan program to assist our churches that are having cash flow problems due to the pandemic. Here are the details:
- Each congregation may borrow up to $10,000, upon request. Funds do not have to drawn all at once, but congregations are encouraged to take less now if they think that will suffice, while retaining the option to draw down the balance at a later time.
- No interest charge through 2020.
- Loans that cannot be repaid by 12/31/20 will be converted, upon request, to a two-year, amortizing loan at 2% interest, due 1/1/2023.
- The borrowing will need to be approved by the vestry.
- All loan disbursements and collections will be made via ACH transfer.
Congregations wishing to borrow under this program must do the following:
- Complete the attached application.
- Call a vestry meeting and get the sample resolution passed.
- Complete the sample loan note (modifying as needed if the initial loan is to be less than $10,000)
- Execute the loan note and certify the resolution.
- Complete ACH bank instructions if your congregation isn’t already enacting ACH transfers with the diocese.
- Return all of the executed documents to Sam Reckford, diocesan CFO.
Once all documentation is received and is determined to be in good order, the diocese will disburse funds within one business day.
While $10,000 may suffice for some congregations while being far too meager for others, the intention is that it will help keep congregations afloat as other avenues are pursued. As communicated separately, the joint task force expects that the government’s CARES Act will provide much more substantial assistance. The task force also intends to consider a second program, although it doesn’t currently anticipate that those funds will be loaned “upon request”.
If you have any questions, please direct them to Sam Reckford at email@example.com.