It is clarified that faith-based organizations are eligible for SBA loans whether or not they provide social services. That is, organizations eligible to participate in these programs cannot be disqualified due to their religious nature, religious affiliation or religious expression. Certain US Small Business Administration rules — CFR 13 CFR Parts 120.110 (k) and 123.301 (g) — exclude certain religious organizations altogether.
Since these rules prohibit the participation of a class of potential recipients based solely on their religious status, the SBA refuses to comply with these subsections and proposes to amend these rules in accordance with the Constitution.
Although Title 13 CFR Part 120.110 (a) states that nonprofits are not eligible for SBA business loans in Oregon (including PPP), Payday loans Oregon, the Federal Aid, Assistance and Economic Security Act, Relief, and Economic Security Act or CARES Act entitles nonprofits to participate in the PPP program whether or not such nonprofits provide secular social services.
They are not. Issuing credit through any SBA program:
Simply put, a religious organization that receives a loan retains its independence, autonomy, the right to express its opinion, religious expression and the right to govern, while no religious organization will be deprived of the opportunity to receive funding on the basis that the circle of leadership, members or employees of this organization are limited to persons who share her religious beliefs and participate in religious practices.
To take advantage of this exemption, you do not need to submit a detailed application or go through a special procedure. If you believe your organization is eligible for an exception to the rules on affiliation, you must submit an application with your loan application.
Issuing a loan from any SBA program is federal financial assistance and is subject to certain non-discriminatory obligations. Any legal obligations that the organization makes upon issuing of this loan are not permanent, so such obligations will expire upon payment or forgiveness of the loan.
The SBA explains that the proposed rules apply to the goods, services and conditions offered to people by the recipients of these loans, but not to the missionary activities of the religious organization within its community. For example, SBA rules would require a religious organization that operates a restaurant or thrift store that anyone can visit to serve people.
Category: General