This is the strangest of strange occurrences: government guaranteed loans paying the salaries of pastors and other church and church related workers.
If you’re applying or have received the loan and want to explain your church’s thinking, feel free. I doubt that there will be a question on the ACP about it.
I’ve seen some SBCers weigh in against it as a general principle. The only serious warning I’ve seen on this was this.
Let’s assume that 100,000 religious organizations receive federal funding through the CARES Act and that 5,000 of those organizations fail to meet the requirements of the act to have their loans forgiven and therefore enter into a repayment program. And, let’s assume that of those 5,000 organizations, 1,000 find themselves unable to repay their loans on time – a one percent default rate.
What happens to those 1,000 organizations?
Good question. The author outlines a few possibilities.
I make no judgment about any church’s autonomous choice. These are strange times. For now, other questions are more pressing.