Amata Alerts Churches To SBA Help From CARES Act
Statement
Wednesday, Congresswoman Aumua Amata is informing churches in American Samoa that Congress provided assistance options that can also apply to churches and qualifying nonprofit charities in the CARES Act through the Small Business Administration (SBA), and this assistance can cover most expenses for eight weeks.
"Our churches have their doors shut temporarily, but they still have bills to pay," said Aumua Amata. "Under the CARES Act, churches can get the same assistance as small businesses during this difficult time to pay those basic obligations, such as salary, mortgage interest, rent and utilities."
The assistance is set up in the form of short term loans, however, eight weeks of expenses within these loans are forgivable. In this process, a church would need to apply for an SBA loan, and the terms of the loan are structured to relieve financial strain.
First, the loan payments on any expenses beyond eight weeks will be deferred for six months. Second and more importantly, the SBA will forgive the portion of the loan that is used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest -- saving eight weeks of many common monthly church expenses.
"I know our people are missing our joyful church services," continued Amata. "Our churches are such a big part of our communities and our lives. It's good to know there are options to keep these ministries financially healthy in this time."
In this joint effort from the U.S. Treasury and the SBA, the SBA will also waive most of the standard collateral requirements, personal guarantees, or SBA fees to make this assistance as accessible as possible. These benefits are part of the new $349 billion Payroll Protection Program established by the CARES Act.
"A special thank you to all our pastors and church leaders for all they do to make our islands a better place," concluded Amata. "Thank you to President Trump, Treasury Secretary Mnuchin and especially SBA Administrator Jovita Carranza for moving quickly on this important program."
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