FAITH in Small Business Act
FAITH in Small Business Act
Plain Language Summary
# FAITH in Small Business Act Summary **What the Bill Does:** The FAITH in Small Business Act would allow faith-based organizations—such as churches, religious nonprofits, and faith-based charities—to access federal Small Business Administration (SBA) loans and disaster assistance programs. Currently, SBA rules typically block these organizations from programs like business loans, microloans, and disaster relief funds if their primary purpose is teaching or promoting religious beliefs. This bill would remove that restriction, based on recent Supreme Court rulings that found such blanket restrictions unconstitutional. **Who It Affects:** Faith-based organizations seeking business loans or disaster assistance would be the primary beneficiaries.
This could include religious nonprofits running businesses, religious schools, churches operating community enterprises, and similar organizations. It would also affect the SBA, which would need to change its lending eligibility rules. **Current Status:** The bill is currently in committee (HR 522, 119th Congress) and has not yet been voted on by the full House. It was sponsored by Representative Tracey Mann (R-Kansas).
CRS Official Summary
Fair Assistance and Impartial Treatment of Help In Small Business ActThis bill implements a proposed rule by the Small Business Administration (SBA) that allows certain faith-based organizations to access business loan and disaster assistance programs. The programs include the Intermediary Lending Program (ILP), Business Loan programs (7(a), microloan, and 504 programs), Economic Injury Disaster Loan (EIDL) program, Military Reservist Economic Injury Disaster Loan (MREIDL) program, and Immediate Disaster Assistance Program (IDAP). Current SBA regulations generally prohibit access to these programs if an organization is principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs.Recent Supreme Court opinions have found it unconstitutional to deny an otherwise qualified recipient access to a public benefit based solely on the organization's religious character (e.g., Trinity Lutheran Church of Columbia, Inc. v. Comer, 582 U.S. 449 (2017)).
Latest Action
Referred to the House Committee on Small Business.