CARES Act PPP Update: Clarity From SBA On Loan Calculation & More

The SBA released more information to help clarify questions about PPP loan amounts. Here are our takeaways for churches, Christian schools, and nonprofits:

April 24, 2020 How to Calculate Loan Amounts

What we Learned For Non-Profits and Churches:

  • Question #6: Detail of Calculation of Loan Amount (Payroll Costs) for Non-Profit
    • Wages, Health Insurance, Retirement, and Taxes
    • Spend 8 weeks after receiving the funds.
    • Clarity for lenders supporting documents
  • Question #7: “eligible nonprofit religious institutions” or Churches.
    • Wages, Health Insurance, Retirement, and Taxes
    • Spend 8 weeks after receiving the funds.
    • Clarity for lenders supporting documents

April 24, 2020 FAQ from SBA on PPP 

What We Learned for Non-Profits and Churches:

  • Question #1: Do the lenders have to replicate the borrower’s calculations?


  • Question #7: Does the exclusion of over $100,000 in compensation include/exclude benefits?

    No, the $100k limit to compensation only applies to wages/salary. Benefits, retirement, and taxes can go over the $100k.

  • Question #8: Do PPP loans cover paid sick leave? 

    Yes, however, it excludes credits received under the Families First Coronavirus Response Act.

  • Question #11: May lenders accept signatures from a single individual who is authorized to sign on behalf of the borrower?

    Yes, this is focused on the application and many churches/non-profits have been tripped up when asked about having a person owning more than 20% to sign the application.

  • Question #14: Time period to determine the number of employees and payroll costs to calculate the maximum loan amount? 

    Previous 12 months or calendar year 2019.

  • Question #15: 1099 contractors are not included in payroll costs.
  • Question #16: Federal taxes are included in determining payroll costs. However, the employer’s portion that is paid direction to IRS is NOT included.
  • Question #20: 8 weeks to determine payroll costs used (75% of the total loan amount) is determined to start when the borrower receives funds.
  • Question #31: What if you have adequate sources of liquidity?

    The borrower must certify that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

  • Question #32:  Does the cost of housing stipend or allowance provided to an employee as part of the compensation count towards payroll costs?

    Yes, Payroll costs include all cash compensation paid to employees, subject to the $100k annual compensation per employee limitation.

April 24, 2020 List of Participating Lenders of PPP by state


Sutton Turner is the chief operating officer of Vanderbloemen, which serves teams with a greater purpose by aligning their people solutions for growth: hiring, compensation, succession and culture. Through its retained executive search and consulting services, Vanderbloemen serves churches, schools, nonprofits, family offices, and Christian businesses in all parts of the United States and internationally.


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