I sit on the board of my church. The board wanted to take advantage of the PPP. I told the board - NO! Do not do this.
History with the New Jersey Economic Development Authority: My experience with new government loan programs is that the government has no clue what it is doing. So, through any loan process, you the borrower are ripped in one direction than another. 1-1/2 years is what it took to get a loan that was over-collateralized by 400%! They had everything I owned including my children's education funds. In the end, I received a check for 70% of the amount I had requested and for which I was on the hook. That's right, they held back money and gave it to different parties who were part of lending and securing the loan. We are not talking trivial numbers.
I should have never signed the papers. I was desperate to survive for another day and to promote a new idea - a new product. Interest rates of 14%.. granted, I was a terrible risk. I had no real money. The business was in the crappers. I was trying to rebuild and needed some capital. I felt like I was in bed with thieves. Still, that money did help me to get out and move the business forward. There were days...
Well, that was in the '90s. PPP came and I feared the same would happen. After we passed on taking PPP loans, the first thing that happened was that non-profits who had an Endowment fund or other capital they did not want to touch for it was not liquid, were told - you don't qualify, give it back. Was not in the black and white at the time PPP was rolled out. Was enforced after the fact.
Now your post Jack... The church would have had a loan which it would have needed to repay. Our temporary shortfall was met through a member of our congregation stepping up and providing the means to cover our payroll. That was awesome by that person. It was also awesome that we did not get in bed with the government.
Government loans may work for some. I have been burnt and I will not soon forget the pain of the process.