SPECIAL FEATURE - Understanding the Coronavirus Aid, Relief, And Economic Security Act
Dan Pilla • April 28, 2020
Critical Help for Individuals and Businesses
On March 27, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This is a massive stimulus package designed to mitigate the horrific economic damage inflicted by the COVID-19 pandemic. The bill provides for about $2.2 trillion in spending, cash rebates and loans to businesses intended to help keep them afloat during this time of unprecedented upheaval to our social and economic culture.
In addition to providing loans (some forgivable, as discussed below), the package provides money for the IRS to carry out new administrative duties under the law. The IRS’s funding looks approximately like this:
• $293.5 million for IRS taxpayer services,
• $170 million for IRS operations support,
• $78.7 million for the Treasury Department’s Bureau of the Fiscal Service,
• $38 million for the Social Security Administration, and
• $37.2 million for IRS enforcement.
Let’s examine some of the key elements of CARES as it relates to individuals and businesses.
Economic Impact Payments
The Centerpiece of CARES
The centerpiece of CARES is the so-called “economic impact payment” that will be handed out to most Americans. This combination stimulus/relief payment is intended to provide families with immediate cash to hold them over while businesses are closed because of the “stay-at-home” orders in effect throughout the nation.
The IRS stated on March 30 that the distribution of checks will begin by mid-April, and as of this writing, money is being deposited into bank accounts. It is estimated that 165 million people, or 93% of all tax return filers, will get some cash. About 140 million will get the full amount of $1,200. The payment is actually considered a credit against your 2020 income tax liability. As such, it is not subject to being taxed. Even if you don’t owe taxes, you could get cash because the pay-ment is considered a “refundable” credit. As such, it’s treated just like the Earned Income Tax Credit.
You must have a Social Security number to get paid. That includes the SSN of the taxpayer and his spouse, and the SSNs of any dependents. Without a valid SSN, you will not receive a payment. See: new code §6428(g).Here’s what you can expect in the way of payment. If your adjusted gross income (AGI) is less than $75,000 for a single person, or $150,000 for a married couple filing jointly, you’ll get $1,200 per individual. Plus, you get an additional $500 for each child under 17. A family of four will get a check for $3,400. There is no limit to the number of children to which the $500 applies. See new code §6428(d).If your AGI exceeds the above amounts, the credit is phased out. Under the phase-out rules, the credit is gradually reduced to zero by the point at which AGI exceeds $99,000 for individuals, $146,500 for heads of household, or $198,000 for joint filers.
The rebate is based on your 2019 tax return or your 2019 Social Security statement, if Social Security is your only income. If you haven’t yet filed the 2019 return, the rebate is based on your 2018 return. As you know from last month’s Pilla Talks Taxes, the filing deadline for 2019 returns is moved to July 15, 2020 (see my update on this article below). The best bet is to get the return filed as soon as possible, especially if your 2019 income is lower than 2018 such as to impact the amount of the rebate you’re entitled to. The IRS will process the rebate checks through the end of 2020.
The IRS intends to deliver the checks via direct deposit. They will put the money in the account indicated on the tax return to which the tax refund payment was made. If no bank account information was provided, you should provide that information to the IRS to get your money as fast as possible. The has a portal on its web site al-lowing individuals to provide their current bank account information. If there simply is no bank account available, the IRS will mail you a check.
If you filed neither your 2018 tax return, nor your 2019 return, you need to get busy. It appears that you will not get a rebate check if both of these returns remain unfiled through 2020.
Earlier in the week of March 30, the IRS said that if a person didn’t file a return because their income was too low to require filing, that person would have to file an “abbreviated” return to get the payment. I don’t know what an “abbreviated” return is. I assume the IRS meant you must file a return to prove you don’t have to file a return, for the purposes only of providing proof of your income and bank account information. Those receiving only Social Security payments might fall into this category.
As of April 1, the Treasury reversed itself on that point. The most recent guidance states that, at least for SS recipients, some veterans and others not otherwise required to file, no return is necessary. The IRS will simply deposit their checks directly into their bank accounts where the SS or other federal benefits are paid. There now is no need for these people to file an “abbreviated” return, whatever that is.
The Paycheck Protection Program
Guaranteed and Forgivable Federal Loans
If the $1,200 refundable credit for individuals is the centerpiece of the CARES Act, the Paycheck Protec-tion Program (PPP) is a close second. And for small businesses, it will very likely prove to be much more valuable than the $1,200 credit. This is especially true since small business owners with AGI above certain limits aren’t getting the $1,200 credit anyway.
The PPP authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. That’s right. I said “forgivable” loans. In fact, not only are the loans forgivable assuming you use the proceeds as provided by law, but further, there is no personal guarantee or collateral required by a business owner to obtain the loan. And what’s more, the Small Business Administration (SBA) “shall have no recourse against any individual share-holder, member, or partner of an eligible recipient of a covered loan for nonpayment of any covered loan” except to the extent that the proceeds were used for a purpose other than those authorized under the law. See: CARES Act §1102(a)(1).
Let me say all this another way. The loan doesn’t have to be paid back if you use the proceeds as authorized. You don’t need to personally guarantee the loan. You don’t have to put up any collateral. You can’t be sued for not paying the loan. Furthermore, it is not necessary to first seek a loan from some other source before applying for a PPP loan. The SBA waived the usual requirement that you seek funding from other sources before coming to the SBA. To top it all off, if the loan is forgiven, the forgiveness does not constitute “income” for tax purposes. And, there’s already talk about adding another $250 billion to the pool of resources available for these loans.
The Paycheck Protection Program is effective for loans made from February 15, 2020, through June 30, 2020. The loan terms are the same for everyone.
WHO QUALIFIES FOR A PPP LOAN?
Any type of business qualifies, including nonprofits, veterans organizations and Tribal businesses. Quali-fied businesses also include sole proprietorships, self-employed individuals and independent contractors. As long as your business has 500 or fewer employees, you can apply. Even certain businesses with more than 500 employees might qualify if they meet applicable SBA employee-based size standards for specified industries. Check the SBA’s website for more details on this.
AUTHORIZED USES OF LOAN PROCEEDS
The loans issued under the PPP will be forgiven as long as you use the proceeds for specifically authorized purposes. The law describes the following as authorized uses of loan proceeds:
• Payroll costs;
• Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums;
• Employee salaries, commissions, or similar compensation;
• Payment of interest on any mortgage obligation (but not prepayment of, or payment of principal on a mortgage);
• Rent (including rent under a lease agreement);
• Utilities; and
• Interest on any other debt obligations that were incurred before “the covered period.” See CARES Act §§1102(a)(1), amending §7(a) of the Small Business Act, 15 U.S.C. 636(a).
The “covered period” is defined as the period beginning on February 15, 2020 and ending on June 30, 2020.
WHAT CONSTITUTES PAYROLL COSTS?
Payroll costs include any of the following items:
• Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
• Employee benefits including costs for vacation, parental, family, medical, or sick leave;
• Allowances for separation or dismissal benefits;
• Payments required for the provisions of group health care benefits including insurance premiums;
• Payment of any retirement benefits; and
• State and local (but not federal) employment taxes assessed on compensation.
Sole proprietor self-employed persons and independent contractors are included in this program, even if they pay no wages to other employees. For this purpose, commissions earned by, or net earnings from self-employment (as reported on Schedule C), are considered “payroll costs.” Such earnings are capped at $100,000 on an annualized basis for each self-employed person.
Payroll does not include employment taxes imposed under the Internal Revenue Code, compensation paid to an employee who lives outside of the United States, qualified sick leave wages for which a credit is allowed under the Families First Coronavirus Response Act, or qualified family leave wages for which a credit is allowed under the Families First Coronavirus Response Act.
What we are talking about here are the payments due and made to employees for their services to your company.
HOW MUCH CAN YOU BORROW?
PPP loans are based on your average monthly pay-roll costs for the preceding twelve months from the date of application. The amount of the loan is equal to the monthly payroll average, multiplied by 2.5. For example, if your 12-month average payroll costs from February 2019 through January 2020 equal $10,000, your loan amount is $25,000 (10,000 x 2.5). The total amount available to any one business under the PPP is $10 million. The lender determines the precise loan amount you will receive based on the documents you provide.
Payroll costs are limited to $100,000 annualized for each employee. So, for example, if you have an employee who earns $120,000 a year, the amount of “payroll” for this calculation is capped at $100,000, or $8,333 per month. This applies to self-employed and independent contractors as well.
HOW MUCH OF THE LOAN CAN BE FORGIVEN?
Forgiveness of the loan is tied directly to how you use the money. The loan will not be forgiven if you use loan proceeds for anything other than payroll costs, mortgage interest (not principle), rent, and utilities payments over the eight-week period after getting the loan. The loan will likewise not be forgiven if you don’t maintain your staff and payroll.
The loan forgiveness amount is reduced if you decrease your full-time employee headcount. Likewise, you will not be forgiven if you reduce salaries and wages by more than 25% for any employee that made less than $100,000 annualized over the past twelve months. If you lay off workers, you have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
WHAT IF THE LOAN IS NOT FORGIVEN?
If the loan is not forgiven, the remaining balance is nevertheless guaranteed by the SBA. It then converts to an amortized loan payable within two years at an interest rate of 1%. Loan payments are deferred for six months.
WHEN TO APPLY
Small businesses (corporations, partnerships, etc.) could submit applications starting April 3, 2020. As of April 10, 2020, independent contractors and self-employed individuals can apply for PPP loans.
WHERE TO APPLY
Apply for a PPP loan through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make PPP loans once they are approved and enrolled in the program. Check with your business bank right away to see whether it offers PPP loans. If it participates with the SBA in any way, it is likely already participating in this program. Go to sba.gov for a list of SBA lenders.
HOW TO APPLY
You must complete the Paycheck Protection Program loan application. It gets submitted to your PPP lender. Include the documentation sought in the form. The application must be submitted so that it can be processed by June 30, 2020. Included here is a copy of the application. You can take out just one loan under this program.
Note that the application, page 2, requires several “certifications.” You must certify “in good faith,” that:
• Current economic uncertainty makes the loan necessary to support your ongoing operations;
• The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments;
• You have not and will not receive another loan under this program;
• You will provide the lender with documentation to verify the number of full-time equivalent employees on payroll and the dollar amount of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting a PPP loan;
• All the information you provide in your application, and all supporting documents and forms, are true and accurate;
• Knowingly making a false statement to get a PPP loan is punishable by law;
• You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submit;
• You affirm that the tax documents are identical to those you filed with the IRS; and
• You also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.
SUPPORTING DOCUMENTS REQUIRED
You will need documents to prove,
1) the number of full time employees on your payroll,
2) the dollar amount of your payroll costs,
3) covered mortgage interest payments, or covered rent payments, and
4) covered utility costs for the eight-week period following the granting of the loan.
As to the number of employees, the Forms W-2 that you submitted to the Social Security Administration for 2019, and the Forms W-4 submitted to you by your employees, will help prove that issue. Also, your internal payroll records, including checks issued to employees for January and February 2020 will prove this point.
As to the dollar amount of the payroll, Forms 941 for all quarters of 2019 and the first quarter of 2020 will prove this, as well as current payroll data for the second quarter 2020.
Interest on loans, rent and utility bills can be document-ed from information on hand for each of these items.
Note that interest on any loans, rent or utilities that you cover with PPP loan proceeds must be paid pursuant to mortgage obligations, rent agreements or utilities for services which began before February 15, 2020. You can’t pay for a new loan or make rent payments per a lease agreement entered into on or after February 15, 2020.
HOW LONG DOES THE PROGRAM LAST?
The application process is open through June 30, 2020. However, there is a cap on the amount of money appropriated by Congress for these loans. Once the money is gone, it’s gone, unless Congress appropriates more, which is distinctly possible. In the meantime, you should apply as quickly as possible.
HOW TO REQUEST LOAN FORGIVENESS
A request for loan forgiveness is submitted to the lender servicing the loan. The request must include documents to verify that the money was used only for authorized purposes. You must prove the number of full-time employees and their pay rates, and, of course, that you paid those wages. You must also prove the payments you made on eligible mortgage interest, lease, and utility bills. You must declare under penalties of perjury that you used the loan proceeds to keep employees on staff and to make eligible mortgage inter-est, rent, and utility payments. To the extent that you used the money for other purposes, the loan will not be forgiven and there may be other legal consequences for misusing the money.
The lender must make a decision on the forgiveness within sixty days. In the meantime, the interest rate is 1% and is fixed. You must begin paying interest on the loan after six months, which is the deferral period. However, interest accrues during the deferral period. The loan must be paid within two years. It can be paid in full earlier as there are no prepayment penalties or fees.
CONCLUSION
Assuming you use the money as specifically dictated by the terms of the PPP program under the CARES Act, this loan is in fact a gift. There’s $349 billion (and likely more) available in bailouts to small businesses under this program.
_______________________________________________________________________________________________________________
Learn more about Dan and your rights as a taxpayer at www.taxhelponline.com
Reading Time 8 mins 48 secs – Most people think about financial provision in terms of their own needs. They want to pay their bills, provide for their families, get out of debt, and enjoy a better life. There is nothing wrong with those desires. God cares about your needs, but His plan for your financial life is bigger than simply having enough for yourself. God has a harvest on His mind, and that harvest is people. He wants people to know Him, experience His goodness, and discover the benefits of His Kingdom. He is looking for people who will partner with Him to accomplish that assignment, and He is willing to provide the resources necessary to get the job done. Second Corinthians 9 tells us that God supplies seed to the sower and increases the resources of those who are willing to be generous. But that brings us to an important question: Can God trust you with His money? God Is Looking for Workers for His Harvest In Matthew 20, Jesus tells a parable about a landowner who went out early in the morning to hire workers for his vineyard. He agreed to pay them a denarius for the day, but he didn’t stop there. He continued hiring workers at nine in the morning, noon, three in the afternoon, and even five o’clock, when only one hour remained in the workday. When evening came, the landowner paid every worker the same amount, including those who had worked only one hour. The workers who had been there all day complained because they thought they deserved more. But the landowner reminded them that he had paid exactly what he promised and had the right to be generous with his own money. What was the landowner’s priority? He wanted to bring in his harvest. He was willing to spend money throughout the entire day to make sure the work was accomplished. His generosity reflected the value he placed on the harvest and his desire to have people involved in bringing it in. We see that same urgency in John 4. After speaking with the Samaritan woman at the well, Jesus told His disciples to open their eyes and look at the fields because they were already ripe for harvest. He then made an incredible statement: “ Even now the one who reaps draws a wage and harvests a crop for eternal life ” (John 4:36a, NIV). Notice those words, even now . God is looking for people who will help bring others into His Kingdom, and He is willing to fund the assignments He gives them. God Supplies Seed to Those Who Are Willing to Sow Second Corinthians 9:6 (NIV) says, “Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.” This is a law of the Kingdom, and understanding it changes the way you approach your finances. God is not simply asking you to give something away and hope for the best. He is teaching you how His Kingdom operates and how the measure you sow affects the harvest you receive. The passage continues by explaining that God is able to make His grace abound toward you so that you have everything you need and can abound in every good work. Verse 10 tells us that God supplies seed to the sower and bread for food. He provides both what you need to live and what you need to sow. His provision is designed to meet your needs and enable your generosity. I remember meeting a pastor and his wife who were facing a desperate financial situation. Their home was scheduled for a sheriff’s sale in just seven days, and they needed $3,500 to save it. After attending a banquet where I was teaching about the Kingdom’s principles of financial provision, they approached me with their last $100 and said they wanted to sow it into the ministry. We prayed together and agreed with God’s Word for the money they needed. That night, they remembered an old screen-printing business they had operated years earlier. The equipment had been sitting unused in their garage, but they felt prompted to reach out to people and offer to make T-shirts. Within that same week, two orders came in, and they earned $6,500 before the deadline. They saved their home and had money left over. Their answer came through an opportunity they already had but had not considered. God directed them toward something they could put their hands to, and they acted on it. One experience with the Kingdom can change the way you see everything. Your circumstances do not have to determine what is possible when you learn to trust God’s Word. Faithfulness Determines What You Can Be Trusted to Handle In Luke 16, Jesus tells the parable of a manager who was accused of wasting his master’s possessions. When the master demanded an account of his management, the man realized he was losing his position. He immediately began making arrangements to secure his own future, reducing the debts of people who owed his master money so they would welcome him after he lost his job. The manager demonstrated that he could think strategically and find ways to benefit himself, but he had not shown that same diligence in handling his master’s resources. His priorities were wrong. He had been entrusted with something that belonged to someone else, and he failed to manage it according to its intended purpose. Jesus then makes a statement in Luke 16:10a (NIV): “ Whoever can be trusted with very little can also be trusted with much. ” Faithfulness begins with what is already in your hands. If you want God to entrust you with greater resources and responsibilities, you must demonstrate integrity in the things you are handling right now. That includes how you manage money, conduct business, fulfill commitments, and treat what belongs to someone else. You may think a small assignment doesn’t matter because nobody notices what you're doing. But God notices. He sees whether you are honest when no one is watching and whether you can be trusted to follow His direction. This doesn’t mean you should give out of guilt or obligation. Second Corinthians 9:7b tells us to give what we have decided in our hearts, not reluctantly or under compulsion. God is looking at your heart and whether your actions agree with what you say you believe. See People the Way God Sees Them The parable of the Good Samaritan in Luke 10 gives us another picture of God’s heart for people. A man traveling from Jerusalem to Jericho was attacked, beaten, and left half dead. A priest saw him and passed by. A Levite did the same. But a Samaritan stopped, treated the man’s wounds, and brought him to an inn where he could recover. The Samaritan gave the innkeeper money to care for the injured man and promised to reimburse him for any additional expenses when he returned. Think about what that meant. The innkeeper had the assurance that the cost of caring for this man would be covered. The Samaritan’s generosity demonstrated the value he placed on the man’s recovery. The Church has been given a similar assignment. People come through our doors carrying the effects of brokenness, wrong thinking, and circumstances they don’t know how to overcome. We have the opportunity to introduce them to Jesus, teach them the Word, and help them discover what belongs to them in God’s Kingdom. Whether you are serving in your local church, helping someone in need, or supporting the Gospel, you are participating in something that matters deeply to God. He wants you to serve from the heart, knowing that He is your source and that there is reward in His Kingdom. Don’t Give Up Before Your Harvest Arrives One mistake people make is expecting an immediate result every time they sow a seed. They give, pray, and believe God, but when nothing happens the next day, they begin to question whether His Word is working. Yet even in the natural world, a seed takes time to grow. You don’t plant something in the morning and expect a mature harvest that afternoon. Galatians 6:7b (NIV) tells us, “ A man reaps what he sows. ” God’s Word is trustworthy, but the harvest may require time, preparation, and circumstances you cannot see. God may need to connect you with certain people, position you for an opportunity, or lead you through steps that prepare you for what you are believing Him to accomplish. I remember seeking God about a vision I had for my company. I had been sowing seed and believing for growth, but I needed a plan to reach the next level. The Lord showed me that the company, as it was operating at the time, did not have the capacity to accomplish what I was envisioning. We would need to grow and make changes before we could see the next steps clearly. I couldn’t get to the final destination from where I was standing. I had to be willing to follow God one stage at a time. The same principle applies to your life. If God has placed something in your heart, don’t abandon it simply because you cannot see the entire path. You may need to make adjustments or take a step that doesn’t seem directly connected to your ultimate goal. That doesn’t mean you’ve missed God. It may be part of the process of getting you where He wants you to be. God is generous, and He wants His generosity to be demonstrated through His people. He wants you to enjoy His goodness, have your needs met, and become a blessing to others. So consider what God has already entrusted to you. Are you managing it faithfully? Are you listening for His direction? Are you willing to use your resources, abilities, and opportunities to help accomplish what matters to Him? You don’t have to wait until you reach a certain level of success to begin. Faithfulness starts with what is in your hands today. A Simple Prayer Father, thank You for Your goodness, generosity, and faithful provision. Thank You that You care about my needs and have invited me to participate in the work of Your Kingdom. Help me see my finances, resources, and opportunities from Your perspective. Teach me to be faithful with everything You have entrusted to my care, whether it seems large or small. Give me wisdom to recognize the difference between seed and provision for my own needs, and help me follow the leading of Your Holy Spirit. I choose to trust Your Word, give with a cheerful heart, and remain faithful as I wait for the harvest. In Jesus’s name, I pray. Amen.
Reading Time 6 mins 35 secs – Have you ever wondered why something God promised doesn’t seem to be happening in your life? Maybe you’ve prayed, stood on Scripture, confessed the Word, and believed, but the situation still hasn’t changed. When that happens, don’t assume God has failed you. His Word always works. Instead, become a student of the Kingdom and ask the Holy Spirit to show you what may be getting in the way. Hebrews 12 warns us about one of those things: a bitter root. It says, “ See to it that no one falls short of the grace of God and that no bitter root grows up to cause trouble and defile many. ” Bitterness doesn’t stay small. It grows. It affects your heart, your words, your relationships, and even the people around you. That is why God takes it so seriously. If you want to walk in freedom and experience everything God has made available to you, you cannot allow bitterness, unforgiveness, gossip, or offense to take root in your heart. Bitterness Grows When It Is Fed Most bitter roots begin with a real offense. Someone hurts you, disappoints you, betrays you, mistreats you, or says something that cuts deeply. The pain may be legitimate, but what happens next matters. The natural response is often to replay the situation, judge the person, or tell someone else what happened. Before long, you’re not only carrying the offense yourself, but you’re inviting other people to carry it with you. That is what happened with Miriam and Aaron in Numbers 12. They began speaking against Moses, criticizing him and questioning his leadership. But Scripture includes one important sentence: “ And the Lord heard it. ” Miriam and Aaron were not responsible for judging Moses. God had chosen him. They did not know everything God knew, yet they spoke as though they had the authority to evaluate and condemn him. We do the same thing far too easily. We hear a story, see something online, get frustrated with a leader, coworker, friend, family member, or even a stranger, and suddenly we have an opinion about their heart, motives, and character. But you don’t know everything. You don’t know their entire story, and most importantly, they do not answer to you. Gossip, slander, and judgment feed bitter roots. They create trouble, spread offense, and poison hearts. God has called us to something different. Unforgiveness Keeps You Bound Jesus told a story in Matthew 18 about a servant who owed his king an enormous debt, far beyond anything he could ever repay. The king had mercy on him and completely canceled the debt. Then that same servant found someone who owed him a much smaller amount. Instead of extending the mercy he had just received, he demanded payment and had the man thrown into prison. When the king heard about it, he called the servant wicked because the man had been forgiven of an impossible debt but refused to extend forgiveness to someone else. That story gives us a picture of what Jesus has done for us. Colossians tells us that through Christ, we have been forgiven. Jesus paid a debt we could never repay. He brought us into God’s Kingdom, gave us a new identity, and made His inheritance available to us. When you understand how much you have been forgiven, it changes the way you look at the people who have hurt you. Forgiveness does not mean what happened was acceptable. It does not mean there are no consequences, boundaries, or restitution. Forgiveness is about what you choose to carry in your own heart. You can hold someone responsible for appropriate consequences without allowing bitterness to hold you captive. When you refuse to forgive, the person who hurt you may continue living their life while you remain imprisoned by what happened. God wants you free. Forgiveness Is a Decision, Not a Feeling One of the biggest mistakes people make is waiting until they feel ready to forgive. Forgiveness is not primarily a feeling. It is an act of faith. Jesus modeled this for us. First Peter 2 says that when people insulted Him, He did not retaliate. When He suffered, He made no threats. Instead, He “entrusted himself to him who judges justly.” Jesus trusted the Father to be the judge, and you can do the same. You may not feel differently the moment you forgive someone. That is okay. Feelings follow. They do not lead. By faith, you can say, “God, I choose to forgive them. I release this into Your hands. You know what happened, You know the pain, and I trust You to judge justly.” That decision begins pulling the bitter root out of your heart. Guard Your Heart and Your Words Proverbs 4 tells us, “ Above all else, guard your heart, for everything you do flows from it. ” Your words reveal what has been growing in your heart. Jesus taught in Mark 11 that faith-filled words have authority. We love to quote the verses about speaking to the mountain, believing we receive, and seeing the answer come to pass. But sometimes we forget what Jesus says immediately afterward: when you stand praying, if you hold anything against anyone, forgive them. That connection is important. You cannot spend a few minutes speaking the Word over your life and then spend the rest of the day criticizing people, complaining about your circumstances, speaking defeat, and feeding offense. Your words matter all day long. The same mouth you use to speak faith can also release fear, bitterness, judgment, and unbelief. You are constantly agreeing with something, so ask yourself: Are your words agreeing with heaven or with the enemy? Don’t Let Strife Take Root in Your Home This principle is especially important in marriage. Ephesians tells us not to let the sun go down while we are still angry because unresolved strife gives the enemy an opportunity. Marriage is a covenant of unity, and when bitterness and unforgiveness enter that relationship, they begin attacking the very agreement God designed to bring strength. If you have offended your spouse, apologize. If your spouse has hurt you, forgive. That does not mean ignoring problems. It means dealing with them without allowing resentment to take root. The enemy would love to use offense to divide your marriage, your family, your friendships, your church, or any other relationship God wants to use for His purposes. Don’t give him that opportunity. You will not go through life without someone hurting you. Offense will come. The question is what you will do with it when it arrives. You do not have to carry it, replay it, tell everyone about it, or let it become part of your identity. You can forgive by faith. You can trust God to judge justly. You can guard your heart, speak life, and pull the bitter root out before it has the opportunity to grow and affect anything else. Jesus has already paid the price for your freedom, and He wants you to experience everything He made available to you. So if the Holy Spirit is bringing someone or some situation to your mind right now, don’t ignore it. Give it to God. Forgive. Apologize if necessary. Make things right where you can. Your freedom is worth it. A Simple Prayer Father, thank You for the mercy and forgiveness You have shown me through Jesus. I choose today to forgive those who have hurt, disappointed, or offended me. I release them into Your hands and trust You to judge every situation justly. Forgive me for the times I have allowed bitterness, gossip, criticism, or unforgiveness to grow in my heart. Help me guard my heart and use my words to bring life, encouragement, and faith to the people around me. Show me if there is anyone I need to apologize to or anything I need to bring into the light. I receive Your freedom today and choose to walk in love, forgiveness, and obedience. In Jesus’s name, I pray. Amen.
Reading Time 5 mins 59 secs – Have you ever sensed God calling you toward something bigger than what you can accomplish on your own? Perhaps it was restoring a relationship, launching a business, serving in ministry, changing careers, or believing Him for healing, provision, or freedom. Yet as soon as you considered taking that first step, your mind filled with questions. How will this happen? Where will the resources come from? What if it doesn’t work? Those questions are familiar to every believer because God’s promises often lead us beyond what seems naturally possible. Left to ourselves, we tend to evaluate every opportunity by our own experience, abilities, and resources. But God’s Kingdom doesn’t operate according to human limitations. It operates by faith. Too many Christians spend years living in what Proverbs describes as “hope deferred,” waiting for circumstances to change while never stepping toward what God has already promised. God never intended for His children to simply admire His promises from a distance. He invites us to believe His Word, act on it, and experience His faithfulness firsthand. Every Promise Carries God’s Ability When God makes a promise, He never asks you to accomplish it through your own strength. His promises are not empty wishes or encouraging thoughts. They carry His power to accomplish exactly what He has spoken. Isaiah reminds us that God’s Word never returns empty but accomplishes the purpose for which He sends it. When God speaks, He has already considered every obstacle, every need, and every detail you cannot yet see. Nothing catches Him by surprise. That truth changes how we respond when God leads us into unfamiliar territory. Instead of asking, “How am I going to make this happen?” we begin asking, “Lord, what are You asking me to do next?” Faith doesn’t require us to have every answer before we obey. It simply requires us to trust the One who does. Faith Moves Before You See the Outcome Hebrews 1:1 tells us that “faith is the substance of things hoped for, the evidence of things not seen.” God’s Word becomes the evidence that gives us confidence to move forward even when visible proof has not yet appeared. Throughout Scripture, we see this pattern repeated again and again. Peter had to cast his line before finding the coin in the fish’s mouth. Joshua and the priests stepped into the overflowing Jordan River before the waters parted. The disciples seated thousands of hungry people before the loaves and fish multiplied. In every case, obedience came before the miracle. God rarely reveals every detail in advance because He is teaching us to trust Him instead of our own understanding. As we move toward His promise, He faithfully reveals the next step. Revelation follows obedience. Stop Measuring God’s Promise by Your Resources One of the greatest obstacles to walking by faith is our tendency to evaluate God’s calling based on what we currently possess. We look at our bank account, our experience, our education, or our circumstances and conclude that what God has placed in our hearts is impossible. But impossible according to whom? If God has truly spoken, then His promise is not limited by your current resources. He already knows what you need before you ever take the first step. He knows the people you’ll meet, the opportunities He will open, and the provision He has already prepared. The God who gives the assignment also provides everything necessary to fulfill it. Our responsibility is not to manufacture the outcome. Our responsibility is to trust His Word enough to begin walking. Faith Always Has Corresponding Action James 2:17 teaches that faith without works is dead. Genuine faith always produces action because believing God changes the way we live. A farmer builds a barn because he expects a harvest. A fisherman prepares his equipment because he expects to catch fish. Expectation always leads to preparation. The same principle applies to every promise God gives us. When we truly believe His Word, our actions begin to reflect that confidence. We pray differently. We speak differently. We prepare differently. We stop waiting for perfect conditions and begin positioning ourselves for what God has promised to do. Faith is never passive. It responds. Don’t Leave the Promise Unclaimed Second Corinthians 1:20 tells us that every promise of God is “Yes” in Christ. Through Jesus, we have been welcomed into God’s Kingdom and invited to live under His covenant promises. Those promises were never intended to remain words on a page. They were given so we could experience God’s goodness in every area of life. The question isn’t whether God is faithful. The question is whether we are willing to believe Him enough to move. Faith doesn’t wait until every detail is clear. It responds to God’s Word with confidence, trusting that He will reveal each step in His perfect timing. As we walk in obedience, we begin to see His faithfulness unfold in ways we never could have orchestrated ourselves. What promise has God placed before you? Where is He asking you to trust Him instead of your own understanding? Perhaps today is your opportunity to stop waiting for certainty and begin walking by faith. As you take that first step of obedience, remember this: God already knows the way forward. He has already prepared what you cannot yet see, and He is faithful to accomplish everything He has promised. When you move toward His promise, you’ll discover that He has been preparing the way all along. A Simple Prayer Father, thank You that every promise You make is trustworthy and backed by Your power. Forgive me for the times I’ve allowed fear, doubt, or my own understanding to keep me from moving forward in faith. Teach me to trust Your Word more than my circumstances and to recognize the next step You are calling me to take. Give me the courage to obey even when I cannot see the entire path ahead, knowing that You are faithful to provide everything I need. Help me walk confidently in the promises You have prepared for me and experience the fullness of life You desire for Your children. In Jesus’s name, I pray. Amen.