Due to the intense and abrupt economic distress COVID-19 has caused, the federal government last week stepped into offer emergency monetary relief with the CARES Act. We highly encourage you to take advantage of this government program if it is available to you.

If you apply for one of the Small Business Administration (SBA) loans that are part of the coronavirus relief package, Lutheran Church Extension Fund has provided the following information in Regards to the SBA Payment Protection Loan Program:

  • If you have a current loan with LCEF it will NOT be an event of default on your loan with LCEF if you obtain an SBA loan. You are free to pursue this option.
  • You will need to go through a preferred SBA Lender. Our suggestion is to go to your depository institution if they are a preferred SBA lender. Presently, we don’t have any recommendations on banks who accept referrals, but we are actively looking for a preferred financial partner we can point you to.
  • For more information, download the Payment Protection Program for Borrowers fact sheet: summary of the benefits;
    • Provides up to 2.5x average monthly payroll to help keep payroll on staff
    • Proceeds must be paid out within 8 weeks of receiving the funds, and can be used on the following:
      • Payroll and Benefits
      • Rent and interest payment on loan taken out prior to Feb 2020
      • Utilities
    • Program has a provision that bring back any workers that have been let go
  • Apply as soon as you can. Demand for these loans will be high. The process will take time, so if you need financial relief now, look for other sources in the meantime.
  • Download a sample application to see the information that will be requested from you.
  • LCEF is not an approved lender. There are lenders with expertise in SBA loans that LCEF does not possess.

Do the calculations on Total Payroll Cost called for by the CARES Act for your organization now. This is the amount you will be requesting when you apply. There is guidance for what is included in these calculations and how to do them at the following links:

We are waiting to hear the guidance SBA gives in light of the CARES Act. Until then, a lot of unanswered questions remain. For example, religious organizations are not specifically excluded from the Act, but the final SBA guidance might exclude religious organizations. The situation remains very fluid at this time. Follow the guidance of the Small Business Administration closely on this matter. It will be your best resource.

We will continue to monitor events and provide updates as necessary.

Additional questions please feel free to reach out to MO District LCEF Vice President Casey Carlson at casey.carlson@lcef.org

The Missouri District and LCEF continues to stand ready to assist with additional options to assist those He has called us to serve. Contact Casey to discuss those options.

Please know that you are not alone. We are here for you.