SBA Clarifies Eligibility of Faith-Based Organizations to Participate in Paycheck Protection and Economic Injury Disaster Loan Programs
SALT LAKE CITY – 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.
"During an economic crisis, often the first thing people have to cut back on is making donations to their favorite charities. But, it's the non-profits that step in and fill the gaps when people are in need. It's critical that these organizations are able to continue to provide services to their communities," said Utah District Director Marla Trollan.
The Economic Injury Disaster Loan program provides qualifying small businesses and non-profits 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.”
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In response to the economic damage occurring as a result of the Coronavirus pandemic, the US Small Business Administration has activated a several programs to assist small businesses in weathering the storm – the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
It has come to the agency’s attention that there are individuals and organizations that are purporting to provide services to small businesses applying for these loan programs. There is often a charge associated with these services. The individuals and organizations offering their services often make representations that they are endorsed by, or have agreements with SBA. They may even ask for your personal financial information, credit card information, or other sensitive information.
Please use caution and perform your due diligence when considering these private services. Some may be legitimate, some may not. Beware of any representation from these service providers that they have been endorsed by SBA, or have an agreement with SBA to provide these services. In some cases, the fees/charges they want to assess may not be allowed under these loan programs.
If you have any questions about any of these organizations or the things they are representing, please contact the SBA Utah District Office at email@example.com or 801-524-3209.