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COVID-19 Resources: Faith-Based Organizations

Federal Loans

Faith-based organizations are eligible to participate in the Paycheck Protection (PPP) and Economic Injury Disaster (EIDL) Loan Programs. Look out for news of a third round of funding.
  1. President Signs PPP Flexibility Act New
  2. Update provides information regarding borrowers' self-certification regarding the necessity of the loan. FAQ –see #31 and #46 Updated
  3. Notifies borrowers that they must adhere to federal nondiscrimination regulations. (The loan is considered federal financial assistance) Published on the SBA website. and in the Treasury website. New
  4. When calculating loan eligibility all employees must be counted (full-time, part-time, and other work arrangements) FAQ –see #36
  5. When calculating loan forgiveness only the number of full-time equivalent employees is counted. FAQ –see #36
  6. Change in ownership occurring after February 15, 2020 may not impact eligibility. FAQ –see #38
  7. Finding a borrower who applied before these directives were published, was in fact ineligible for the PPP, will not impact the SBA's guarantee of the loan as long as the lender complied with the obligations that were in effect at the time. FAQ –see #39
  8. Provided an alternative means of determining eligibility of seasonal employers ( February 15, 2020 or for an 8-week period between February 15, 2019 and June 30, 2019) FAQ –see #9 Updated
  9. SBA offered an alternative formula for calculating maximum loan amount for seasonal employers. FAQ #41 and additional information on increasing loan amount using the revised calculations was published on the Treasury website New
  10. Loan awards must be disbursed in totality within 10 days of the assignment of a loan number by the SBA. Published on the SBA website.
  11. Lenders will have a standard form to report disbursement and must do so in order to collect the processing fee. Published on the SBA website. with additional guidelines on the Treasury website
  12. Combined loans to businesses that are part of a group many not exceed $20,000,000. Any such loans must be withdrawn or cancelled. Failure to do so will result in forfeiture of forgiveness. Published in the Federal Register
  13. Faith-Based Org Eligibility
  14. PPP FAQ for Faith-Based Orgs
  15. Economic Injury Disaster Loan (EIDL) Info.


In some cases where there is commercial activity, faith-based institutions may be subject to the Fair Labor Standards Act. Sections of the Families First Coronavirus Response and the Coronavirus Aid Relief and Economic Security Acts may also be applicable to Faith-based organizations.


Faith based organizations are eligible to compete for federal funding including grants and contracts. Additionally, the Religious Freedom Restoration Act ensures that faith-based organizations