This bill codifies SBA rules allowing faith-based organizations to access business loan and disaster assistance programs. It covers 7(a), microloan, 504, EIDL, and MREIDL programs. Current regulations bar organizations principally engaged in religious instruction, but recent Supreme Court decisions found such exclusions unconstitutional when based solely on religious character. The bill aligns SBA policy with constitutional requirements.
Latest Action
Referred to the House Committee on Small Business.
AI Summary
Plain-English explanation of this bill
This bill codifies SBA rules allowing faith-based organizations to access business loan and disaster assistance programs. It covers 7(a), microloan, 504, EIDL, and MREIDL programs. Current regulations bar organizations principally engaged in religious instruction, but recent Supreme Court decisions found such exclusions unconstitutional when based solely on religious character. The bill aligns SBA policy with constitutional requirements.
Last updated: 1/4/2026
Official Summary
Congressional Research Service summary
<p><strong>Fair Assistance and Impartial Treatment of Help In Small Business Act</strong></p><p>This bill implements a proposed rule by the Small Business Administration (SBA) that allows certain faith-based organizations to access business loan and disaster assistance programs. </p><p>The programs include the Intermediary Lending Program (ILP), Business Loan programs (7(a), microloan, and 504 programs), Economic Injury Disaster Loan (EIDL) program, Military Reservist Economic Injury Disaster Loan (MREIDL) program, and Immediate Disaster Assistance Program (IDAP). </p><p>Current SBA regulations generally prohibit access to these programs if an organization is principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs.</p><p>Recent Supreme Court opinions have found it unconstitutional to deny an otherwise qualified recipient access to a public benefit based solely on the organization's religious character (e.g., Trinity Lutheran Church of Columbia, Inc. v. Comer, 582 U.S. 449 (2017)).</p>
Key Points
Main provisions of the bill
Allows faith-based organizations access to SBA loan programs
Covers 7(a), microloan, 504, EIDL, and MREIDL programs
Implements proposed SBA rule changes
Reflects Supreme Court religious organization precedents
Removes religious character as disqualifying factor
How This Impacts Americans
Potential effects on citizens and communities
Following Trinity Lutheran and similar Supreme Court decisions, excluding otherwise qualified organizations from government programs based on their religious nature is unconstitutional. This bill ensures faith-based small businesses and disaster victims can access the same SBA assistance available to secular organizations. It codifies administrative changes aligned with current constitutional law.
Policy Areas
Primary Policy Area
Commerce
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
522, 119th Congress (2025). "FAITH in Small Business Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-522
