Questions regarding the CARE Act Loans

What are the loans?

The Paycheck Protection Program (PPP) loan is designed to help small employers (including churches) during the economic downturn of the Covid-19 pandemic. The amount of the loan is 2.5 times of monthly payroll costs. This loan may be forgiven if we meet certain criteria. If it is not forgiven, the interest rate is 1%.

The other loan is called Economic Injury Disaster Loan (EIDL). This loan is designed to help with the temporary loss of income experienced by small businesses. 

We have received funds from both loans. If you call Redeemer Covenant Church your home and would like to know the amounts please call the Leadership Chair - Sheila Walker at 916-342-3108.

Why did we apply for the loans?

We were encouraged by our denomination to apply for the loans. This is important because it confirmed for us that this does not in any way go against the beliefs of the Evangelical Covenant Church. As part of a greater denomination we rely on and honor the wisdom, guidance and accountability given by our denomination. 

Although we are called to trust God and not live in fear, we do not believe this action is a result of fear. We believe we are acting out of good stewardship to what God has given us through our government. Our Sovereign God is the only One who knows the future and we trust Him to provide our needs and sometimes that is in unprecedented ways. We decided to go ahead and apply for the loans because of the provision to give it back if we don’t need it.

We also decided to apply because there is a possibility that the loan will be forgiven if we meet certain criteria. We are not sure if we will meet that criteria. If we do not meet it the interest rate for repayment of the PPP Loan is 1%. 

Do we need the loans?

God only knows. But let us tell you what we do know. You, our treasured Redeemer family, are faithful, charitable and amazingly generous. You have followed God’s Word and commands and our church has been blessed. Our regular giving has been very good and beyond that, we have been blessed by an anonymous gift of $10,000.00. Good turned into very good. And now the reason why we may need the loan: we do not know what the future holds but we do have the past to show us the way. In the past, in the summer months, our giving falls a little short. God has always provided but He also tells us to be prepared.

As it stands right now, at the end of April, we are about $4,000.00 short of our budget through regular giving. Taking our special gift into consideration we have about a $6,000.00 cushion. This may or may not be enough to carry us through the summer months. Again, we just don’t know. Our prayer is that these blessings will be used to honor our Heavenly Father, remain obedient to His Word and show love to our church family and our community.

If we take this money, are we depriving someone else of money? 

We believe this is God's provision to care for Redeemer Covenant and He will also provide for others in need.