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re: SBA loans to churches

Posted on 4/9/20 at 3:58 pm to
Posted by tkeefer
TX
Member since Apr 2004
1121 posts
Posted on 4/9/20 at 3:58 pm to
No way should a church receive this. Many have decided to get political yet still have tax free status. There are a lot of rich preachers out there.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
41698 posts
Posted on 4/9/20 at 4:30 pm to
quote:

Ok. I'm not saying you're wrong. I am all eard and am reading this thread and both sides of the argument make sense.


Would under PPP regulations, a church be a "tribal business"? Or Indy franchise?


Here's the thing. I'm not saying I agree or disagree with the decisions our government is currently making, but it might help to really understand what is happening. Then, some of this might make sense (again, you can agree or disagree about if it's a good idea or not).

The PPP started off as basically a short term subsidized payroll program for "small" employers. The government decided that was a social benefit in keeping people on payrolls, including benefits being paid. So they came up with a plan to pretty much cover the payroll costs for 2 months for people working for companies that were in such dire financial straits that, but for this help, they would be laid off.

Then the political process started.

First, god forbid we help "rich" people, so the left demanded we not cover salary that would equate to more than 100K per person on an annualized basis. So we got that limitation.

Then, landlord started complaining, well if I don't collect rent, then I'll be in trouble. And the president, you know, owns rental property. So, we allowed the money to cover rent.

Then the utilities and banks piped up about utility costs and bank costs. As you may expect, these industries have really good lobbyists. So, they said ok, we will allow that too. And as basically an easy calc, we will give you an extra 25% of payroll for 2 months to help with those other expenses.

Then, some said, well, it's really not fair to punish companies that have savings that *could* cover these expenses, and reward companies who have no savings, so they basically let any business apply without a "need" component.

And that's how you end up with a 350 billion program, that will probably grow.

But overall, the idea was to pay the employees of small employers. Under that mindset, the "industry" of the business really shouldn't matter.

And this is not without precedent, either. After natural disasters, the fedgov offers help to all sorts of organizations that would not qualify for normal federal benefits. For example, FEMA money will be offered, and SBA loans offered to private schools, even though private schools usually get little to no government money normally.
Posted by PearlJam
NotBeardEaves
Member since Aug 2014
13908 posts
Posted on 4/9/20 at 4:33 pm to
Well said. It will be interesting to see how me, my kids, and grandkids pay for all of this.
Posted by danilo
Member since Nov 2008
26341 posts
Posted on 4/9/20 at 4:36 pm to
So they are businesses? Guess they should pay taxes
Posted by shawnlsu
Member since Nov 2011
23682 posts
Posted on 4/9/20 at 4:40 pm to
I'm a church go'er, but I'm not in favor of this.
If you don't put in the pot, you shouldn't take from it.
Posted by shawnlsu
Member since Nov 2011
23682 posts
Posted on 4/9/20 at 4:45 pm to
quote:

Churches that have schools attached to them should be paid.

I always thought the school and church had to be different entities.
Posted by TSLG
Member since Mar 2014
6724 posts
Posted on 4/9/20 at 4:49 pm to
quote:

but I'll probably leave this one alone at the moment as I won't be getting paid for it. I'll take that hug anyway.

I definitely like you.

I'm leaving it alone for different reasons: I think it'd be a cold day in hell that they would allow a church's information less protection than a non-religious organization, and I really don't want people to have a reason to have any animosity towards their particular religious institution. Religion is good for people.

However, I wouldn't be opposed to the idea going viral that financial information about churches could get out. I know if I'm a sketchy church, I'm steering clear of my gubment loan if I think there's a chance for my information to get out.
Posted by GoCrazyAuburn
Member since Feb 2010
41857 posts
Posted on 4/9/20 at 4:52 pm to
quote:

So they are businesses? Guess they should pay taxes




They do
Posted by N2cars
Member since Feb 2008
40389 posts
Posted on 4/9/20 at 6:30 pm to
I hate to sound like "back in my day", but the OT used to be smarter.

Sure, you had a few slack-jawed apple-lickers posting, but they weren't as prevalent then as they are now.

I'll hang up and wait for the "ok, boomer" replies.
Posted by N2cars
Member since Feb 2008
40389 posts
Posted on 4/9/20 at 6:34 pm to
The larger churches do this:

Ecfa.org

Very thorough and openbook.
This post was edited on 4/9/20 at 6:37 pm
Posted by FightingTigers138
In your thoughts
Member since Dec 2016
6009 posts
Posted on 4/9/20 at 7:32 pm to
quote:

Because one does it, they all do it? They have plenty of crooked businesses out there as well.

Most church congregations decide how much the preacher is paid. Not the preacher himself. When you see preachers in private jets, it’s usually profits from something they are selling. Not their church payroll income.


I wouldn't say usually. Maybe occasionally. Most of the super-rich TV evangelist are corrupt as shite.
Posted by FightingTigers138
In your thoughts
Member since Dec 2016
6009 posts
Posted on 4/9/20 at 7:34 pm to
quote:

The church's have taken a huge hit. They have staff just like a normal business. The only difference is the proceeds. They usually go to charities locally or missions. Tithes go to church improvements. That's why they are tax exempt. The staff still pays taxes. They should be treated like any small business. If any small businesses would like to donate their profits, they can be tax exempt as well.


Your church may be like that, but a lot of them arent.
Posted by biscuitsngravy
Tejas, north America
Member since Jan 2011
3978 posts
Posted on 4/9/20 at 7:44 pm to
quote:

Why in the frick would they eligible? Are they saying they are business? If so, they need to start paying taxes ASAP.



The Jesus business has been tax free and extremely lucrative for a long long time. Wonder if Brother Joel has submitted his application.
Posted by lsusa
Doing Missionary work for LSU
Member since Oct 2005
6372 posts
Posted on 4/10/20 at 12:14 pm to
quote:

quote: They own multiple rental properties, sell cars, run daycares, offer tax preparation services and so forth. But are they charging market rate, or are they doing it pro bono / sliding scale based on income? When I lived in New Orleans the local Kiwanis clubs would hrlp people prepare their taxes free of charge.



The ones I am talking about aren’t actual charitable organizations aimed at helping people.

These are actually for profit businesses that operate under the umbrella of a “church” that was created for that purpose.


Posted by arktiger28
Member since Aug 2005
5511 posts
Posted on 4/10/20 at 12:33 pm to
I see both sides of the argument here. But it cracks me up how many in this thread think most preachers are getting rich. 59% of churches run under 100. 94% of churches run under 500. For every mega church pastor that is lining his pockets there are 100’s who are doing there best to take care of their people and make ends meet because of a sense of calling. There are a lot of pastors out there doing good things to help their people through this. No need to crap on all of them because of a few wolves seeking to take advantage of their people.
This post was edited on 4/10/20 at 12:35 pm
Posted by AlonsoWDC
Memphis, where it ain't Ten-a-Key
Member since Aug 2014
9387 posts
Posted on 4/10/20 at 12:38 pm to
quote:

private schools usually get little to no government money normally.


This post was edited on 4/10/20 at 12:39 pm
Posted by Matt225
St. George
Member since Dec 2019
1297 posts
Posted on 4/10/20 at 12:43 pm to
No way churches should be eligible.
I believe it past time all churches are taxed.
Posted by Golfer
Member since Nov 2005
75052 posts
Posted on 4/10/20 at 12:45 pm to
quote:

No way churches should be eligible.
I believe it past time all churches are taxed.


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