FAITH in Small Business Act: New Law Formalizes Equal Treatment for Faith-Based Organizations in SBA Programs

The "Fair Assistance and Impartial Treatment of Help In Small Business Act," or FAITH in Small Business Act, officially backs a 2021 Small Business Administration (SBA) rule. This rule, issued on January 19, 2021, ensures that faith-based organizations get equal access to SBA loan and disaster assistance programs. Basically, it's taking a rule that was already in place and giving it the full force of law.

Leveling the Lending Field

This act is all about making sure religious organizations have the same opportunities as everyone else when it comes to SBA programs. The January 2021 rule was already doing that, but this law solidifies it. This means faith-based organizations, from small businesses run by religious groups to nonprofits providing community services, should have a fair shot at getting SBA loans and disaster relief. For example, a church-run daycare or a synagogue operating a small food pantry could be eligible for the same SBA support as any other similar organization, without facing extra hurdles because of their religious affiliation.

Potential Pitfalls

While the aim is fairness, there are a few things to keep an eye on. The bill itself doesn't define "faith-based organization," so how that's interpreted could matter. It will be important to ensure consistent application of the rules across different religious groups. Oversight of how funds are used will also be key to preventing any misuse. The actual impact hinges on the specifics of that 2021 SBA rule, which this law now formally supports. Because those specifics are not included within the text of the law, more investigation may be required to fully understand the extent of the rule.