FAITH in Small Business Act

This bill would give faith-based groups the same access as other organizations to Small Business Administration loans and disaster help. It would lock in an SBA rule so it has the force of law, ensuring equal treatment for these groups when they apply for assistance. In practice, churches, synagogues, mosques, and other faith-based nonprofits could apply for SBA programs without being turned away just because they are religious. This follows recent Supreme Court decisions saying the government can’t deny public benefits solely due to an organization’s religious identity.

Today, SBA rules generally block groups that mainly teach or promote religion from certain programs. The bill would change that, letting qualified faith-based organizations seek help through programs like 7(a) business loans, microloans, 504 loans, the Intermediary Lending Program, and several disaster loan programs, including EIDL and MREIDL.

Key points:

• Who is affected: Faith-based organizations seeking SBA loans or disaster assistance.
• What changes: Equal treatment is required; the SBA rule allowing access for these groups becomes law.
• Programs involved: 7(a), microloan, 504, ILP, EIDL, MREIDL, and Immediate Disaster Assistance Program.