Parish and School Financial Assistance
April 8 - Financial Issues at Parishes and Schools
Bishop John has approved several measures to provide financial relief to parishes and schools caused by the closure of churches and schools due to the Covid-19 virus. This relief covers four financial areas:
- Parishes and schools may elect (up to) a six-month deferral of payments to the diocese. These payments include the following:
UPCSA parish payments
UP Catholic parish subscription payments
Service agreement payments
If the parish or school can make all or partial payments during this period that would be helpful.
The diocese will discontinue the automatic withdrawals for hymnal payments beginning April 1, 2020. If the parish can afford to make the payment, please send in a check.
- If funds are needed (after applying for CARES Act PPP loan) for operations, then the Diocese is working to secure a line of credit with the Knights of Columbus and offer parishes and schools emergency loans at 3%. The application for a loan is attached here.
- MCC is asking all units to continue paying at least the health insurance portion of their bills. MCC stated that units could contact Account Receivable Coordinator, Stephanie Semrau by phone (1-800-395-5565) or email (email@example.com) to request delays of other insurance payments.
- In lieu of having “Collection Counters” the Parish should adhere to the following cash receipts procedure:
CASH RECEIPTS: The parish secretary should make a listing of all checks and cash (cash receipts) that come through the mail. This person should be independent of the accounting functions, if possible. The listing should indicate the date received, person from whom the funds were received, and the amount received. A listing is given to the pastor weekly. Cash receipt should be deposited daily, intact (all receipts) with the secretary making up the deposit ticket and taking deposit to the bank. All cash receipts are to be deposited and recorded in the general ledger.
April 7 - Small Business Administration Paycheck Protection Program Loan Information
Parishes and schools in need of financial assistance may now apply for CARES Act funding from the Small Business Administration. Please find the necessary forms to complete these applications attached here. Please also find the attached sample application form available here.
Please note that parishes and schools must also include the attached Addendum A to loan applications.
Once copies are completed, signed, and reviewed, the applications should be sent to a local SBA Participating Lender. Please click here to find a participating lender in your area or use the attached list of Michigan lenders here (as of April 6, 2020).
Note: to complete the “average monthly payroll” field, parishes and schools will first need to access the “I have 2019 Payroll Costs” report from Paycor. 1099 employees should be removed from calculations.
Parishes and schools will then need to add monthly health and retirement costs to calculate total monthly payroll spending. Please use the attached spreadsheet showing health and retirement costs for diocesan parishes and schools for your calculation.
If you have any questions regarding your parish/school Paycheck Protection Program (PPP) application or need to review your application before review before submitting them to your SBA Participating Lender, please contact Tim Thomas at: firstname.lastname@example.org, Carol Parker at: email@example.com, John Waldo at: firstname.lastname@example.org, or Irene McCauley at: email@example.com for additional assistance.
Please also find a list of frequently asked questions on the Paycheck Protection Program available here.
Lenders may request that parishes and schools provide articles of incorporation and/or proof of 501(c)(3) nonprofit status information to supplement Paycheck Protection Program applications. Please use the attached documentation to meet this requirement.