Small Business Administration Docket SBA-2020-0057 Proposed Rule

2021-00446: Ensuring Equal Treatment for Faith-Based Organizations in SBA's Loan and Disaster Assistance Programs

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Summary

The U.S. Small Business Administration ("SBA" or "Agency") is proposing to remove five regulatory provisions that run afoul of the Free Exercise Clause of the First Amendment. All five provisions make certain faith-based organizations ineligible to participate in certain SBA business loan and disaster assistance programs because of their religious status. Because the provisions exclude a class of potential participants based solely on their religious status, the provisions violate the Free Exercise Clause of the First Amendment. SBA now proposes to remove the provisions to ensure in its business loan and disaster assistance programs the equal treatment for faith-based organizations that the Constitution requires.

The agency’s own summary, as published.

What this changes

Amends 3 parts of the Code of Federal Regulations — the standing rules this notice rewrites.

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