Additional guidance from SBA on Paycheck Protection Program loans for churches
Seattle Presbytery
This information is included in this comprehensive guide created by K&L Gates.
Update on April 3, 2020:
On April 3, 2020, the Small Business Administration (SBA) issued additional guidance on its affiliation rules as applied to faith-based organizations. This guidance provides a helpful clarification: because of statutory and constitutional protections for the free exercise of religion, the Government is not going to examine polity or otherwise question the eligibility of churches for PPP loans based upon whether or how the church that is applying for a loan is affiliated with other churches.
Every PC(USA) church should include the following addendum to their Paycheck Protection Program application on a separate sheet of paper, entitled “Addendum A” with the following text:
ADDENDUM A
The Applicant claims an exemption from all SBA affiliation rules applicable to Paycheck Protection Program loan eligibility because the Applicant has made a reasonable, good faith determination that the Applicant qualifies for a religious exemption under 13 C.F.R. 121.103(b)(10), which says that “[t]he relationship of a faith-based organization to another organization is not considered an affiliation with the other organization . . . if the relationship is based on a religious teaching or belief or otherwise constitutes a part of the exercise of religion.”