“Paycheck Protection Program funds are used to save jobs and help people, not end lives,” said Senator Cramer.
In the first round of P3 loans, $ 349 billion went to businesses and nonprofits, although there were reports of large companies approving small business loans.
The membership rules meant that small entities that were part of a larger nonprofit organization would count as part of a single large entity, thus apparently disqualifying many Catholic dioceses, parishes and schools from the program.
However, guidelines later released by the SBA clarified a faith-based exemption, and many parishes and schools requested and received help. According to CBS News, 9,000 of the 17,000 Catholic parishes in the United States received P3 loans in the first or second round of funding.
Loan applications were cut off on April 16 when the program ran out of money. A second round of $ 310 billion was then approved by Congress.
Some Catholic dioceses subject to bankruptcy proceedings have not applied for PPP loans or have sued the SBA for being disqualified due to their bankruptcy status. In the Diocese of Harrisburg, Pa., Parishes and schools applied for loans as separate legal entities from the diocese, and were accepted, although the diocese itself went through a process of bankruptcy.
Loeffler’s bill would allow larger nonprofits such as the YMCA and religious organizations not exempt from P3 regulations to access small business loans.
“Churches, YMCAs and other organizations are doing an incredible job during this difficult time to provide child care, meals and other supports for families and children,” said Senator Loeffler. “This legislation will allow them to access bad credit loans to help them keep their doors open and continue to serve their communities while ensuring that no taxpayer money goes to abortion providers.”