Insurance and CARES Act Resources

Insurance and CARES Act Resources

The following are resources for our MNYS rostered ministers, lay leaders, and congregations regarding business interruption insurance, unemployment insurance, CARES Act coverage, emergency loans and new Paid Family Leave.
Business Interruption
As we understand this coverage it is part of a property insurance policy intended for business loss following physical damage to insured property or building(s). Congregations should reach out to their insurance agent/broker for specific policy/coverage information and advice regarding filing of any claims.
Unemployment Insurance
The U.S. Department of Labor oversees this program.
  1. Unemployment insurance for laid off church employees.  In most states, churches do not participate in unemployment insurance and church employees are therefore not eligible for the benefits.  Under the CARES Act, those normally not eligible (including church employees) can collect unemployment benefits if they are laid off.
  2. The Paycheck Protection provisions referenced below, allowing small businesses, which include churches and other non-profits to apply for loans which can convert to grants.
Paycheck Protection Program” is the part of CARES Act that gives loans of 2.5 times the average monthly payroll of a small business or nonprofit. These loans can be forgiven if the number of employees does not decrease. Section 1102 describes eligible entities as 501c3 tax exempt organizations.  There is NO apparent restriction to churches or other religious organizations.  Please note, however, congregations come under the umbrella 501c3 exemption of the Evangelical Lutheran Church in America.  To prove their tax exempt status, congregations would have to get the standard letter from the Secretary’s (Counsel’s) office.  This should be done as soon as possible. If you need the tax exempt letter. To initiate the Group Ruling Exemption process for your congregation or other ELCA entity or organization, please send an e-mail to [email protected]. Enter in the subject line “501 (c) (3) Exempt Status,” note in the body of the email the legal name of the congregation, address of the congregation, and Tax ID number and send it.  A church email is preferred for the ELCA to send the digital certificates.

Small businesses and sole proprietors can apply beginning on April 3, 2020, and independent contractors and self-employed individuals can begin applying on April 10, 2020.



Paycheck Protection Program Application  

Additional Resources