Church Alliance Sends Letter to Small Business Administration Seeking Clarification on Eligibility for PPP Loan Program

Topic: 
Financial Services

On April 1, 2020, the Church Alliance sent a letter to Jovita Carranza, Administrator of the U.S. Small Business Administration (SBA).  The letter asked the SBA to clearly acknowledge that religious organizations are eligible to apply for the Paycheck Protection Program recently included in the CARES Act.  The letter also urges that failure of an organization to have filed for a 501(c)(3) exemption letter will not be a bar to eligibility for any form of assistance under the CARES Act. Clarification was requested that the receipt of PPP loan funds would not lead the recipient to be considered a recipient of federal funding.  Finally, the letter requests that relevant PATH Act affiliation rules be adopted to define control in the context of churches.