COVID-19: SBA Says There Is Still A Hundred Billion Dollars in PPP for Faith-Based Organizations

Mark Winchester, the Deputy District Director of the U.S. Small Business Administration, says that there are still a hundred billion dollars left in PPP for nonprofit and faith-based organizations. He gives insight on best practices to apply, as well as other helpful tools available free of cost.

"Jovita Carranza came out with an Interim Final Rule indicating that faith-based organizations would be recognized as a nonprofit without having to file as a nonprofit as long as that faith-based organization met the requirements of the faith-based organization by the IRS."

Mentioned Resources:

U.S. Small Business Administration

Payroll Protection Program (PPP)

SBA lender

Economic Injury Disaster Loans (EIDL)

Jovita Carranza's Interim Final Rule

SBA form 2483

SBA Houston Website

Women's Business Center

One-on-One Business Counseling

Houston Responds COVID-19 Resources


Tommy Rosson:

Hello, I'm Tommy Rosson with Houston Responds. Thank you for joining us today. Mark Winchester, the Deputy District Director of the U.S. Small Business Administration is joining us today to talk about the PPP program. And there's some important news. Mark, tell us a little bit about what's going on and that there's a hundred billion dollars still left of the PPP program.

Mark Winchester:

Well, Tommy, you're correct. The PPP, Payroll Protection Program, that is a loan program that is administered through the Office of Capital Access. And so whether it is a small business, a nonprofit, faith-based organization, they will want to go to their local SBA lender who's offering the Payroll Protection Program. And so, with EIDL, you go to SBA, go directly to SBA, you go online, you go online to apply with the Payroll Protection Program. You go to your local lender, local financial institution that participates in the SBA loan guarantee program, who was also participating in the Payroll Protection Program

Tommy Rosson:

On the PPP, what are the concerns? What does the church need to know about that?

Mark Winchester:

Very good question. So, I want to let you know Tommy that the Administrator Jovita Carranza came out with an Interim Final Rule indicating that faith-based organizations would be recognized as a nonprofit without having to file as a nonprofit as long as that faith-based organization met the requirements of the faith-based organization by the IRS. And so if there's a faith-based organization or nonprofit that meets the requirements by the definition of the Internal Revenue Service, they can apply for the Payroll Protection Program. And Tommy, excellent question. The Payroll Protection Program, it is up to $10 million. It is a loan that has a maturity of 24 months. It has an interest rate of 1%. There's no cost to apply. It has a hundred percent guarantee. But to your point, Tommy, the Payroll Protection Program, it's focus is payroll. The focus is keeping organizations, staff and employees employed. And so the costs that the funds can be used for are payroll or rent, utilities and mortgage interest, those are the only expenses that the Payroll Protection Program can be used for.

Tommy Rosson:

And one of the things that you mentioned is time is of the essence to get these applications in. Is that correct?

Mark Winchester:

Tommy, that is correct. What it is, is there, as I mentioned, there have been several appropriations. The first one was April 3rd, the last one was last week. And that was on April 27th. So the second appropriations was, excuse me, April 27th, and it was for 310 billion. And we currently have approximately 100 billion left. And so, the funding will lapse here very shortly. And so if, if there's a faith-based organization or if there is a nonprofit that believes that the Payroll Protection Program that they would benefit from that, they will want to complete, Tommy, a form called SBA form 2483 dated April, 2020. And they will want to complete that application and take that to their local lender who participates with SBA, who's participating in the PPP program and submit that application to pursue those funds so that they can keep their staff employed.

Tommy Rosson:

That's great. I know that's been a major concern and I know also that some people were discouraged it ran out so quickly the first time. So it's good to hear that there's, there was another appropriation.

Mark Winchester:

Well, you know, Tommy, and that's a very good point. There was some institutional changes in the second round of appropriations. And what I mean by institutional changes, a couple of things. And Tommy, you make a good point. Any one lender could not lend more than 10% of the total set aside amount for the Payroll Protection Program. That was number one. Number two, Tommy, of the $310 billion, 60 billion needed to be earmarked for financial institutions, those financial institutions with between 10 and 50 billion in assets, and those financial institutions would less than 10 billion in assets. They wanted to make sure that 60 billion was going to community lenders and that small businesses had access to those community lenders to apply for the Payroll Protection Program. And I'll share this with you, Tommy, nonprofits, faith-based organizations. They can visit our website at and go to COVID-19 resources and one you'll see a list of upcoming webinars related to EIDL and PPP.

Two you will see our current handout PowerPoint presentation related to EIDL and PPP and three ,Tommy, and probably more importantly if the faith-based organization or nonprofit they need, you know, they don't know what lender to go to. We have a complete list of SBA lenders here in Houston that are also participating in the PPP program. And Tommy, there's several columns. One of the columns it says, do you permit new members or do you accept new clients? And there are, I would say about a dozen lenders on that list that have indicated yes, they do accept new clients. So the point is you don't have to be a current member of their bank in order to apply for the Payroll Protection Program. And so that if you have organizations that are interested in applying, they can go to our website, get that list of lenders, and then even look at lenders who do not require a membership. They can be new clients and they can apply for the Payroll Protection Program.

Tommy Rosson:

Well, that's great information. I'm so thankful you joined us today. What else would you add? Any additional information you'd want to provide for these church leaders and nonprofit leaders?

Mark Winchester:

So that's a great question. You know, I mentioned about capital, I mentioned about contracting, we call it the four C's. The third C is counseling and just would share with you, with your nonprofits and faith-based organizations that we have SBA resource partners that can provide at no cost to them, and is confidential, one-on-one business counseling regarding EIDL regarding PPP, regarding financial ratios about supply chain management, exporting, just a wealth of resources for the organization and it's at no cost to them. And that includes the Gulf Coast Small Business Development Center Network, the organization score that provides mentorship. Then we also have the Women's Business Enterprise Alliance Women's Business Center. And those are the three resource partners from SBA that provide one on one counseling.

Tommy Rosson:

And that's a great tool for pastors to use, especially as we've have heard from as they've had to shift during COVID-19 to an online presence. Many times it is a smaller church with a pastor and he does everything. So he's definitely not a, probably doesn't have a business background. And so access to those counselors to make sure you're doing things the right way and make sure you have access to these loans is a great asset.

Mark Winchester:

Tommy, I really do appreciate this time. I really appreciate you disseminating this information to the churches and faith-based organizations here in Houston and also making this information available to nonprofits and for doing this on such short notice. I really do appreciate it.

Tommy Rosson:

You're very welcome. Thank you so much for joining us.

Mark Winchester:

Thank you

Tommy Rosson:

Pastors. If you'd like more information about this, all the links that were referenced during this interview will be in the notes as well as others. Those links will also be at our website,

Additional COVID-19 resources for congregations available here.

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