General
USCCB Letter to the SBA Commenting on SBA Business Loan Program (May 2020)
Comments on SBA Interim Rules (May 2020) Business Loan Program Temporary Changes; Payroll Protection Program— Nondiscrimination and Additional Eligibility Criteria, Docket No. SBA-2020-0024, RIN 3245-AH40
On behalf of the United States Conference of Catholic Bishops, we submit the following comments on the interim final rule issued by the Small Business Administration on the paycheck protection program (PPP) and published on May 8, 2020. 85 Fed. Reg. 27287.
We are grateful to the SBA for the guidance that this rule provides for faith-based and other organizations participating in the PPP.
We have three comments.
First, the rule helpfully clarifies that, for purposes of the PPP, “SBA regulations do not bar a religious nonprofit entity from making decisions with respect to the membership or the employment of individuals of a particular religion to perform work connected with the carrying on by such nonprofit of its activities.” 85 Fed. Reg. at 27288. Thus, the rule reaffirms that religious employers may make “hiring decisions according to their religious beliefs with respect to all ‘activities,’ not just ‘religious activities.’”
Second, the rule acknowledges that, with respect to any loan or loan forgiveness under the PPP, the nondiscrimination provisions in the applicable regulations “incorporate the limitations and exemptions provided in corresponding Federal statutory or regulatory nondiscrimination provisions,” including those provisions that permit single-sex admissions practices by educational institutions, allow religious organizations to reserve housing for their co-religionists, and permit single-sex emergency shelters.
Third, we ask that the SBA go further and determine that the emergency relief provided under the PPP does not constitute federal financial assistance. As explained in greater detail in our April 21 comments, a contrary reading of the CARES Act is inconsistent with what Congress intended and would create barriers to emergency relief, barriers that Congress neither contemplated nor intended.