Hundreds of thousands of dollars in loans taken out by Archbishop Bergan’s Catholic schools under the Paycheck Protection Program have been completely canceled.
The loans, totaling about $ 680,000, help reduce the parish’s current deficit to just under $ 70,000, CFO Steve Hill said in a school update on Thursday.
“Therefore, [it’s] just great, great news [that provides] a huge benefit to the parish and the school, ”said Hill. “We are still working and maintaining our diligence with the expenses, trying to keep them as low as possible.”
The parish filed a request to cancel a PPP loan in early November. At this point, Hill said he didn’t expect the loan to be completely forgiven.
“We expect the majority of the loan to be forgiven, but we are probably seeing some of it, probably in the range of $ 60,000 to $ 100,000, that we will have to pay back,” Hill said in early November. “But, it’s still a little early to say exactly where we’re going to get away with this.”
After filing a request for forgiveness, Hill said the parish expected it to be at least three to five months before the parish received a decision. However, he said the government and the parish bank moved quickly to make a decision.
“When we look back at last year’s financial data, we ended the year with a deficit of around $ 750,000, but we still had that chunk of forgiveness lying around,” Hill said. “Our loans were about $ 680,000, so by writing them off entirely, our deficit was reduced from $ 750,000 to about just under $ 70,000.”