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.
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Learn more about Dan and your rights as a taxpayer at www.taxhelponline.com
Reading Time 5 mins 48 secs – Most people were never designed to simply survive. Yet that is exactly how many live. Paycheck to paycheck. Bill to bill. Problem to problem. When life becomes a constant struggle to make ends meet, dreams often begin to disappear. Vision fades. Purpose becomes difficult to see. Instead of building something meaningful, people spend their energy trying to escape pressure, avoid emergencies, and make it through another week. But that was never God's design. Money Is Not the Problem Many Christians have been taught to view money with suspicion. Some assume that having money is wrong. Others believe that prosperity and spirituality cannot coexist. Yet Scripture does not say money is evil. Paul told Timothy that “ the love of money is a root of all kinds of evil ” (1 Timothy 6:10, NIV). The problem was never money itself. The problem was allowing money to become an idol. Money itself is simply a tool. Like any tool, it can be used for good or for harm. A hammer can build a house or break a window. The issue is not the tool. The issue is the heart of the person using it. God never intended His people to fear money. He intended them to understand it, steward it, and use it for Kingdom purposes. The Curse Was More Than Sin When Adam and Eve walked with God in the Garden, they lacked nothing. There was no fear. No shortage. No survival mentality. Everything they needed was already provided. But after the Fall, humanity entered what Scripture describes as a cursed system of painful toil, sweat, thorns, and thistles. God told Adam that the ground was cursed and that food would now come through painful labor and the sweat of his brow. From that moment forward, people found themselves fighting simply to survive. Many people are still living under that mindset today. They work jobs they dislike because they feel trapped. They surrender dreams because they feel they have no options. They lose sight of who they are because survival consumes all their attention. But Jesus came to bring something different. Good News for the Poor When Jesus announced His ministry, He stood in the synagogue, opened the scroll of Isaiah, and declared that the Spirit of the Lord had anointed Him to proclaim good news to the poor. Jesus knew that poverty was about more than money. It affects how people see themselves. Dreams are exchanged for desperation. Purpose is replaced by pressure. Jesus came to restore more than provision. He came to restore identity. Think about that. What is good news to someone who is poor? The good news is not that poverty is a blessing. The good news is freedom. Freedom from bondage. Freedom from limitation. Freedom from a system that keeps people trapped. Isaiah’s prophecy continues by describing broken hearts being healed, captives being set free, and those who mourn receiving beauty instead of ashes. It paints a picture of restoration. Jesus came to restore what was lost. He came to reconnect people to the Kingdom of God and the resources, wisdom, and provision that flow from it. You Were Created to Create One of the greatest lies people believe is that they are destined to spend their lives confined by limitations. But you were made in the image of God. God creates. And He created you with the ability to create as well. You were not designed to live without vision. You were not designed to live without purpose. You were not designed to spend your life trapped in survival mode. God reminded Israel in Deuteronomy 8 not to forget where their increase came from. As they entered a land of abundance, built fine houses, and watched their silver and gold multiply, He warned them not to believe their own strength had produced it. Instead, He said, “ Remember the Lord your God, for it is he who gives you the ability to produce wealth ” (Deuteronomy 8:18, NIV). Notice what it does not say. It does not say God gives everyone wealth without responsibility. It says He gives the ability. The wisdom. The ideas. The opportunities. The strategies. The insight. Often, one God-given idea can change the course of an entire life. The Blessing Works Through You Many people spend their lives looking for something to bless. The Kingdom works differently. God blesses people. When Joseph was placed in charge of Potiphar's household, everything under his care prospered because the blessing was operating through Joseph. The blessing was not on the building. The blessing was on the person. The same principle appears in Deuteronomy 28, where God promises to bless everything His people put their hands to. The blessing wasn't on the barns. The blessing was on the people filling the barns. Wherever you place your hand in obedience to God, His favor, wisdom, and provision can flow through you into that assignment. You carry Kingdom authority. You carry Kingdom citizenship. You carry Kingdom potential. You Can Start Today Perhaps you feel trapped in survival mode. Maybe debt has stolen your peace. Maybe disappointment has caused you to lower your expectations. Maybe you’ve stopped dreaming because life has become about getting through the next month. God has not forgotten you. His Kingdom still operates. His promises still work. His wisdom is still available. His favor still opens doors. Paul wrote that God is able to do immeasurably more than all we ask, think, or imagine according to His power at work within us. And the same God who gives seed to the sower still gives His people the power to produce wealth, create value, serve others, and fulfill their purpose. You do not have to spend your life surviving. In Christ, there is a better way. A Simple Prayer Father, Thank You for sending Jesus to redeem me from every part of the curse and to bring me into Your Kingdom. Help me renew my thinking where I have accepted survival as my destiny. Show me the opportunities, wisdom, and purpose You have prepared for my life. Teach me to steward resources faithfully, trust Your promises completely, and use every blessing to advance Your Kingdom. Thank You for giving me the power to produce wealth and the grace to fulfill my assignment. In Jesus’s name, I pray. Amen.
Reading Time 5 mins 08 secs – Faith does not usually disappear all at once. It happens slowly. A little distraction here. A little neglect there. A few days without feeding on the Word of God. A few moments of fear left unchecked. Before long, you may still remember what faith felt like, but you are no longer living from that place. That is what spiritual atrophy looks like. In the natural, muscles weaken when they are not used. You may remember being strong. You may remember what you used to carry or accomplish. But when the moment comes to use that strength again, you realize something has changed. The same thing can happen spiritually. You can remember the Scriptures. You can remember past victories. You can know the right things to say. But faith is more than repeating words. Faith is agreement with heaven. More Than Saying the Right Words Jesus said in Mark 11:23 that whoever speaks to the mountain and does not doubt in his heart will have what he says. The issue is not only what comes out of your mouth. The issue is also what your heart truly believes. Many people say, “My faith is weak.” But often, the real issue is unbelief. Jesus said faith as small as a mustard seed can move a mountain (Matthew 17:20). That means the problem is not the size of your faith. If faith is present, heaven has jurisdiction. Faith is not pretending everything is fine while fear still dominates your thinking. True faith is becoming so persuaded by God’s Word that His truth feels more real than the circumstance standing in front of you. The question is this: Are you in agreement with God’s Word? Or has fear, disappointment, or a past failure painted a different picture inside of you? The Enemy Works Through Pictures Fear always tries to create an image. A bad report. A painful memory. A failed attempt. A worst-case scenario. The enemy wants you to meditate on what could go wrong until fear feels more real than God’s promise. But every promise from God carries a picture too. Healing carries a picture. Provision carries a picture. Peace carries a picture. Victory carries a picture. If the picture inside you does not match what heaven says, your thinking has to be renewed. That only happens through the Word of God. Build Your Foundation Before the Storm Jesus said the wise man built his house on the rock. When the storm came, the house stood firm because it had a foundation. The storm is not the time to begin building. Do not wait until sickness comes to search for healing Scriptures. Do not wait until pressure hits your finances to learn how God’s Kingdom works. Build now. Meditate on the Word now. Mark 4 teaches us that the Word is seed. When it is planted in your heart, it grows over time. First the stalk, then the head, then the full grain. Faith grows the same way. As you continue feeding on truth, what God says becomes more real than what circumstances say. What Comes Out First Reveals Your Foundation When pressure suddenly hits, the first words out of your mouth often reveal what you truly believe. Fear speaks quickly. But faith speaks with authority. If fear has been leading your thoughts lately, do not live condemned. Recognize where you are and go back to the Word. Strengthen what has grown weak. Let truth become alive inside you again. Because when you are fully persuaded, you stop wrestling with whether God will do what He promised. You simply stand. You Can Start Fresh Today God’s mercies are new every morning. That means yesterday does not have the final word over your life. You are not trapped by past failures, past disappointments, or seasons where you felt spiritually dry. God is not asking you to live off old victories or old encounters with Him. He invites you to walk with Him daily, to be renewed daily, and to grow stronger daily. You are not stuck in spiritual weakness. Faith can be rebuilt. Strength can return. Your confidence in God can grow again. The same way muscles strengthen through consistent exercise and nourishment, your spirit becomes strong when it is continually fed with truth. Every moment spent in God’s Word is building something inside of you. Even when you cannot immediately see it, the seed is growing. You can renew your mind. You can rebuild your foundation. You can feed your spirit until faith rises again and God’s promises become more real to you than fear, pressure, or uncertainty. The enemy may look for an opportune time, but you do not have to live vulnerable or unprepared. When your life is built on the Word, you are not easily shaken by bad reports, changing circumstances, or unexpected pressure. You know where your confidence comes from. Build your life on truth. Stay spiritually nourished. Guard what you allow into your heart and mind. Listen to the Holy Spirit, and follow His direction day by day. And when pressure comes, you will not collapse under it. You will stand firm, anchored in the promises of God and confident that He is faithful to finish what He started in you. A Simple Prayer Father, Thank You for Your Word and for teaching me how Your Kingdom operates. Show me where fear, unbelief, or wrong thinking has taken root in my heart. Help me renew my mind and become fully persuaded of Your promises. Strengthen my faith, guide me by Your Spirit, and teach me to stand firmly on Your truth. In Jesus’s name, I pray. Amen.
Reading Time 4 mins 25 secs – Fear feels real. It talks loudly. It paints pictures. It rehearses worst-case scenarios. And if you do not know how to stop it, it will try to script your future before you ever get there. But fear is not truth. Fear is not fact. And through God’s Word, you can live free from it. Scripture says plainly, “ Even though I walk through the darkest valley, I will fear no evil, for you are with me” (Psalm 23:4a, NIV). Notice that carefully. It does not say fear is unavoidable. It does not say anxiety is your permanent condition. It does not say torment is part of your identity. It says, I will fear no evil. That means freedom from fear is possible. Fear Works Through Images Fear often begins with a thought, but it does not stop there. It immediately tries to form a picture. The doctor says something concerning, and fear paints the ending. The bank account drops, and fear paints the ending. A symptom shows up, and fear paints the ending. A problem hits your family, and fear paints the ending. That is how the enemy works. He presents an image and tries to convince you it is reality. But just because something enters your mind does not mean it is true. Fear is an imagination. It is an illusion. It may feel convincing, but that does not make it a fact. The enemy wants you to meditate on what could go wrong. God calls you to stand on what He said. The Real Battle Is at the Root Fear is often treated like the main problem. But fear is really a symptom. Like a fever in the body, it points to something deeper that needs attention. The deeper issue is what you believe. If fear keeps dominating your thoughts, then somewhere a lie has been accepted as truth. That is why the answer is not just trying harder to calm down. The answer is renewing your mind. You must identify the lie. Then you must replace it with truth. Second Corinthians 10:5 reminds us that we are to cast down imaginations and every high thing that exalts itself against the knowledge of God. That means you do not let fearful thoughts sit in your mind and build a home there. You reject them. You replace them. You do not fight fear by admiring it, analyzing it, or entertaining it. You fight fear by confronting it with truth. What You Are Anchored to Matters Life will always present moments that seem dangerous, uncertain, or impossible. The question is not whether you will face pressure. The question is what you are anchored to when pressure comes. If your confidence is anchored to circumstances, you will always feel unstable. Circumstances change. Reports change. Emotions change. But God’s Word does not change. Truth can hold you. Just as a climber trusts the anchor that keeps him from falling, you must learn to trust the promises of God more than the pictures fear is trying to show you. When your life is anchored to truth, fear loses its power to dominate your thinking. Renewing Your Mind Changes What Feels Possible There was a time when many things people now accept with confidence would have seemed impossible. Flight looked impossible. Certain athletic feats looked impossible. What changed? Knowledge. Training. Repetition. Confidence in a higher law. In the same way, many believers still live under the assumption that fear is normal, fear is wise, fear is protective, or fear is just part of life. But God’s Kingdom operates differently. In Romans 12:2a (NIV), it says, “Do not conform to the pattern of this world, but be transformed by the renewing of your mind.” Transformation does not happen by accident. It happens when you retrain your thinking with truth. The world trains people to expect loss, danger, failure, sickness, and defeat. God trains His people to expect His faithfulness, His promises, His strength, and His victory. If you keep feeding on fear, fear will feel natural. If you feed on truth, freedom will become normal. You Must Replace the Picture You cannot simply tell yourself not to think about something. You must replace the wrong picture with the right one. If fear says, “This will destroy you,” answer with what God says. If fear says, “You are going under,” answer with what God says. If fear says, “You will never recover,” answer with what God says. Truth is the antidote. When God promises healing, provision, peace, protection, and victory, those promises carry pictures. They are meant to shape your imagination. Too many people meditate on everything that can go wrong. But faith grows when you meditate on what God has already said in His Word. The enemy wants your imagination captured by fear. God wants your imagination renewed by truth. Your Future Does Not Belong to Fear Many people have lived so long under fear that they assume it will always define them. It will not. You can be free. Your life does not have to be governed by fear of sickness. Fear of failure. Fear of rejection. Fear of lack. Fear of loss. Fear of the future. God did not create you to live tormented. He created you to live in His Kingdom, under His rule, with His peace, and in the confidence of His promises. The future belongs to those who believe what God says more than what fear suggests. So, start again. Open your Bible. Find out who you really are. Train your mind in truth. Reject the lie. Hold onto His promises. And refuse to let fear write a story God never wrote for you. A Simple Prayer Father, Thank You for not giving me a spirit of fear. Thank You for giving me power, love, and a sound mind. Help me recognize every lie the enemy tries to plant in my thoughts. Teach me to renew my mind with Your Word and to reject every imagination that rises against the truth of who You are and who I am in Christ. Strengthen me to stand on Your promises, speak with authority, and live in the freedom You have given me. In Jesus’s name, I pray. Amen.