Support for Faith-Based Small Businesses

Official: FAITH in Small Business Act

IntroducedJanuary 16, 2025

Why This Matters

This bill makes sure that faith-based organizations can receive the same support from Small Business Administration programs as other businesses. It helps ensure fair treatment in accessing loans and disaster assistance.

If you run a faith-based small business, you can access the same support as other businesses for loans and assistance.

Affects: Faith-based organizations that operate as small businesses.

Summary

Fair Assistance and Impartial Treatment of Help In Small Business Act This 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)).

What changes is this bill making?

1. This bill ensures faith-based organizations get equal treatment in Small Business Administration programs. 2. It makes a specific rule from 2021 legally binding. 3. The rule covers loan and disaster assistance programs. 4. Faith-based organizations can access the same support as other businesses. 5. This aims to prevent discrimination based on religious status.