SMLC FINANCIAL UPDATE
Through the end of August 2020, SMLC’s Operating Account had realized $294,395 of total income (compared to $334,095 budgeted income for this period) and $268,886 of total expenses (compared to $304,556 budgeted expenses) resulting in net income of $25,509 (compared to $29,539 budgeted).
Of this income, 82% or $241,392 was from regular offerings from our members. This is $25,103 below budgeted offerings during this period. Other appreciable income losses through August are attributed the loss of Church Use fees as SMLC’s building has been closed and Loose Offerings as in-person attendance at Sunday Services was curtailed, both due to Covid-19 pandemic precautions.
In the face of declining revenues, and at the recommendation of the Synod and ELCA, at the beginning of August SMLC applied for a forgivable loan from the federal government’s Paycheck Protection Plan (PPP). We had elected not to apply for such loan when the PPP program was first initiated earlier in the year as we believed other small businesses needed the funds more than SMLC. However, when the PPP program was extended, we were advised that unused funds were available which led us to reconsider the earlier decision. An application was submitted in early August and SMLC was immediately approved for a $42,075 PPP loan. These funds were deposited in our Operating Account on August 11th. To qualify for loan forgiveness, at least 60% of these funds must be used for payroll expenses over a 24-week period and no more than 40% may be used for utilities and internet services. SMLC payroll expenses alone will exceed the total amount of the PPP loan over this 24-week period hence this loan and its accrued interest will be forgiven. The $42,075 PPP proceeds are included in the total income amount reported above for SMLC’s Operating Account. Without these funds, the Operating Account would be reflecting a deficit and we would be in a position of having to draw from reserve funds.
—Tom Cassel, Treasurer