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Atheists upset that churches, other faith-based organizations can get coronavirus stimulus aid

Religious institutions qualify for loans and grants to fund payroll and other operations under coronavirus Paycheck Protection Program.

Published: April 7, 2020 2:52pm

Updated: April 7, 2020 6:51pm

The $2.2 trillion coronavirus stimulus plan, also known as the CARES Act, provides $350 billion for small businesses through the Paycheck Protection Program, and atheists are upset that religious institutions qualify for loans and grants to fund payroll and other operations.

Churches and other faith-based organizations have seen donations dry up amid a national economic crisis and "social distancing" keeping people from gathering in pews.

"The government cannot directly fund inherently religious activities," Alison Gil, legal and policy vice president of American Atheists told NPR News. "It can't spend government tax dollars on prayer, on promoting religion, [or] proselytization. That directly contradicts the establishment clause of the First Amendment. This is the most drastic attack on church-state separation we have ever seen." 

Faith-based organizations are often at the forefront of providing relief in the wake of natural disasters and other emergencies, providing food pantries, housing, cash assistance and other services. Samaritan's Purse, an evangelical Christian organization headed by Franklin Graham, son of late televangelist Billy Graham, collaborated with city officials as they set up a 68-bed field hospital in New York City's Central Park to help with coronavirus treatments. 

Yet even though religious organizations do qualify for the loans, there was some initial confusion about whether this was the case. Sen. Josh Hawley, R-Mo., was upset that the SBA reportedly was denying churches CARES Act loans.

“I am furious to hear that the SBA is WRONGLY telling churches and lenders that churches and religious nonprofits don’t qualify for the new #COVID19 relief program,” Hawley wrote on Twitter. "This needs to be fixed immediately, or this program will not work."

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"The SBA needs to step up for the sake of the small businesses, churches, synagogues, charities and more who are depending on the SBA relief approved by Congress," Hawley wrote in a follow-up tweet. "The Administrator needs to fix the disinformation about eligibility and issue clear guidelines immediately."

Hawley attached a letter he'd sent to to SBA Administrator Jovita Carranza. Read Hawley's letter here:

"Section 1102 of the CARES Act is unambiguous on this matter," Hawley wrote on Thursday to Carranza. "Unaffiliated non-profit entities with under 500 employees that are structured as 501(c)(3) organizations are eligible for assistance. This includes churches and other religious non-profits. I urge that you move to immediately correct this misinformation and clarify to your local and regional offices that they must not arbitrarily disqualify churches and other religious non-profits from eligibility under the Paycheck Protection Program."  

The SBA issued a statement Saturday quoting Carranza to "clarify" that churches and other faith-based organizations would be allowed to apply for relief "without restrictions based on their religious identity or activities."

“Following the passage of the emergency economic relief assistance, the Administration and Congress acted to ensure that small businesses and non-profits alike have access to critical funds to keep their workers paid and employed,” Carranza said. “Faith-based organizations have always provided critical social services for people in need, and SBA will make clear that these organizations may access this emergency capital.”

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