I can’t blame my board member for jinxing it, but in early March, with fears of COVID-19 growing and rumblings of group cancellations, she predicted that the situation would worsen quickly, and within a week, our onsite operations at Rolling Ridge Retreat and Conference Center were closed by order of Governor Baker of Massachusetts.

For our facility, and probably for yours also, the past three months have been a rollercoaster with the ups and downs of the PPP loan adding to the adventure.  Because of the fluidity of information and delays from our bank, we missed funding from the first round. When our loan was finally approved in the second round, I still wasn’t sure how we would be able to spend 75% of the money on payroll in an 8-week period with our facilities closed and the majority of our staff on furlough and transitioned to unemployment.

While I listened to countless webinars on PPP, none addressed the concerns I had as a retreat center director. I reached out to Horizons Stewardship and began to raise the issues that I was hearing from others in camping ministry who were also questioning how to maximize the PPP loan with summer camps looking to be cancelled. After an online meeting, they agreed to offer a webinar on PPP loan specifically addressing the needs of those in camping and retreat ministry.  

Between the time of our initial conversation in mid-May and the date of the webinar on June 3, 2020, restrictions on PPP loan forgiveness were changing as the House had just passed amendments which were going to the Senate.  Thankfully, the proposals would benefit camping and retreat ministries.

The full presentation with Ted Batson and Stan Reiff of CapinCrouse, and Joe Parks and Rhodes Logan from Horizons Stewardship, can be found here.

The primary changes in the new law H.R. 7010, The Paycheck Protection Program Flexibility Act of 2020 simplify the PPP loan forgiveness process and greatly increase the parameters of the forgiveness: 

1. Extension from eight weeks to 24 weeks for capturing forgivable PPP loan expenses. 

2. Relaxation of staff headcount because of restrictions or reduction in business so unable to bring staffing back to pre-pandemic levels. 

3. Reduction of  the SBA’s 75% payroll cost requirement with a new statutory 60% payroll cost requirement.

4. Extension of the time to rehire workers from June 30, 2020 to December 31, 2020.

With the reduction of payroll costs from 75% to 60%, forgiveness is now "all-or- nothing," but the extension to 24 weeks makes forgiveness more realistic for camp ministry sites. For seasonal camps with no summer staff in 2020, the suggestion is to first calculate forgivable payroll costs, and if 60% is not reached, consider bringing on staff in new temporary roles (i.e., donor development). The key principle in whether a site should bring back staff is to balance the needs of the camp with the needs of employee.

While the 60% for payroll is non-negotiable, the remaining 40% of the loan provides camps and retreats the opportunity to invest in the future through proper cash management in either full forgiveness, pending expenses for utilities, mortgage, et al, or as a low-interest loan.  

Because the rules of engagement for PPP have changed with reduced payroll over an extended period, more options emerge from a stewardship perspective for the 40%. For many of our sites, recovery will take more than a year. It is important for us as ministry leaders to keep our eyes on the big picture as we make wise decisions, while remembering, as Stan Reiff says in the video, “Our dependency is not on the PPP loan, but on God, who gives us enough for what we need.”  

With the PPP situation still fluid, it is important to stay dialed in with the latest updates. Keep in touch with your bank, as they are the ones who will determine whether your expenses are forgiven. Most importantly, fix your eyes on Jesus, the author and perfecter of our faith, and our constant companion on this rollercoaster ride.

Rev. Dr. Lawrence Jay is the Executive Director of Rolling Ridge Retreat and Conference Center, one of four CRM sites of the New England Annual Conference. An ordained American Baptist pastor, he has been involved with camping and retreat ministries in both California and Massachusetts since 2006.