Federal Policy

Small Business Administration Must Fix New Rules to Prevent Unconstitutional Church Bailouts

Washington, D.C.—Today, the religious equality watchdog organization American Atheists submitted comments to the Small Business Administration, opposing the agency’s interim final rules for the Paycheck Protection Program because they roll back long-standing constitutional protections for the separation of religion and government.

“Religious liberty is built on the idea that government entanglement with religion can be a profound threat to individual rights, too often leading to religious oppression,” wrote Alison Gill, Vice President for Legal and Policy at American Atheists, in the comments. “A core principle of religious liberty is that the coercive taxing power of the government cannot be used to force citizens to support a religion that is not their own.”

In April, Congress passed the CARES Act, creating an initial pot of $350 billion in forgivable loans under the Paycheck Protection Program (PPP). The Small Business Administration suddenly “declined to enforce” long-standing regulations that prevented direct funding of religious activity, opening up these forgivable loans — essentially free government money — to houses of worship.

“In the CARES Act, Congress recognized the importance of church/state separation protections by, for example, ensuring that higher education recipients could not spend funding on ‘sectarian instruction, or religious worship,’” explained Gill. “Congress did not stipulate in the CARES Act that PPP forgivable loans could not be extended to houses of worship because, until this point, SBA already had in place sufficient church/state separation protections.”

In its comments, American Atheists urged SBA to issue a new interim final rule providing that loans forgiveness under PPP is not available for any funds used for inherently religious activities. Funds ineligible for loan forgiveness should include 1) the salary of any clergy or other staff engaged in inherent religious activity 2) any amount spent on rent or mortgage interest payment for facilities related to sectarian instruction or religious worship, and 3) any utilities costs for facilities related to sectarian instruction or religious worship, said the religious equality watchdog group. 

“SBA now has an opportunity to correct the constitutional deficiencies and misstatements of law in their original guidance and issue new rules for this important program,” said Gill. “Even during a pandemic, SBA cannot be allowed to violate the critical protections for religious freedom in the U.S. Constitution.”

Read the full comments below.


Loader Loading...
EAD Logo Taking too long?
Reload Reload document
| Open Open in new tab

###

American Atheists is a national civil rights organization dedicated to equality for atheists and other nonreligious people. We protect the rights of atheists, advance social inclusion, and empower nonreligious people through advocacy, education, and community building.

Press Contact

If you have questions, please visit our Contact Us page. If you are a member of the media and would like to speak with someone from our team, please contact:

Melina Cohen
Director of Strategic Communications
[email protected]
(908) 276-7300 x103

If you have questions, please visit our Contact Us page. If you are a member of the media and would like to speak with a member of our team, please contact:

Melina Cohen
Director of Strategic Communications
[email protected]
(908) 276-7300 x103

Related News

American Atheists Slams Trump Task Force Findings on “Anti-Christian Bias”

American Atheists Urges Senate to Rein in Unconstitutional, Unaccountable DHS

Trump Administration’s School Privatization Order Defies Will of The People

Atheists: Kennedy is a Threat to Public Health and Vector of Disinformation