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SBA Clarifies Eligibility of Faith-Based Organizations
Maumelle, AR
04/06/2020 09:49 AM

SBA Clarifies Eligibility of Faith-Based Organizations to

Participate in Paycheck Protection and Economic Injury

Disaster Loan Programs

WASHINGTON – SBA Administrator Jovita Carranza today announced that SBA issued

guidance clarifying that all faith-based organizations impacted by Coronavirus (COVID-19) are

eligible to participate in the Paycheck Protection Program and the Economic Injury Disaster

Loan program, without restrictions based on their religious identity or activities, to the extent they

meet the eligibility criteria outlined in the CARES Act that was passed by Congress, signed into

law by President Trump, and implemented by the Paycheck Protection Act Interim Final Rule.

“Following the passage of the emergency economic relief assistance, the Administration and

Congress acted to ensure that small businesses and non-profits alike have access to critical

funds to keep their workers paid and employed,” said Carranza. “Faith-based organizations

have always provided critical social services for people in need, and SBA will make clear that

these organizations may access this emergency capital.” The Paycheck Protection Program is

designed to keep small business workers employed and provide small businesses with capital

through the nation’s banks and other lending institutions, with support from the SBA. The

Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest

rate and maturity of two years. SBA will forgive the portion of loan proceeds used for payroll

costs and other designated operating expenses for up to eight weeks provided at least 75% of

loan proceeds are used for payroll costs.

The Economic Injury Disaster Loan program provides qualifying small businesses and nonprofits

with working capital up to $2 million with low interest rates and terms extending up to 30

years. “While every American is being affected by COVID-19, the impact of this pandemic is

particularly hurting our schools and places of worship, and disproportionately impacting the

underrepresented communities, the sick, the elderly and the lower income,” added Carranza.

“It’s vitally important that organizations focused on delivering critical social services and meeting

community needs remain viable, particularly during this economically challenging time.”

 

About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a

reality. As the only go-to resource and voice for small businesses backed by the strength of the

federal government, the SBA empowers entrepreneurs and small business owners with the

resources and support they need to start, grow or expand their businesses, or recover from a

declared disaster. It delivers services through an extensive network of SBA field offices and

partnerships with public and private organizations. To learn more, visit www.sba.gov.

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