Newsletter from

Steve Richardson & Company

Certified Public Accountants

April 6, 2020

SBA Wages & Minister’s Housing Allowance 

Dear Clients and Friends:

We are already getting some SBA push back on Minister’s Housing Allowance. This push back is not uniform. The SBA is, itself, not sure of the rules.

Attached, by reference to the following link, is a letter making the case that ministerial housing allowance is a valid part of wages.

https://srcocpa.sharefile.com/d-s4130d57f2834ba69

I believe that the housing allowance is a legitimate part of “other similar compensation” and my letter makes that case.

This letter is a part of the “2019 Payroll Summary Report” to reconcile your wages to your W-2s and is to be a part of your loan application.

The CARE Act does not address a minister’s housing allowance. Those types of issues are too detailed for this early stage of the process. Typically issues such as the housing allowance are addressed in SBA regulations which can take months to years to develop. The SBA may eventually pass rules and guidelines addressing such matters, the CARES Act only defines the Paycheck Protection Program in broad terms as: Salaries, wages, tips, commissions and “other similar compensation”.

Sincerely,

Steve Richardson, CPA