13 Investigates: PPP loans for 1000s of churches, SBA bends rules
HOUSTON, Texas (KTRK) -- Hours after SNAP (Survivors Network of those Abused by Priests) criticized the Catholic church for accepting PPP loans Thursday, 13 Investigates looked into the program finding tens of thousands of churches accepting cash in the job saving program.
Our team also found the feds changed their own rules to do so.
The Personal Protection loans were created to help struggling businesses make ends meet.
Thursday SNAP members gathered outside the archdiocese to express their anger over how much of that money was given to the Catholic church. The group is upset that taxpayer dollars meant for coronavirus relief is being given to dioceses that have battled sexual abuse claims and allegations of cover-ups.
ABC13 reached out to the archdiocese but never received a response.
Federal documents reveal the PPP program 'declined to enforce' provisions of federal law for PPP typically barring religious groups from accepting federal loans.
When our team dug into the program in Texas we found at least 174 Catholic non-profits received loans estimated to save 8,583 jobs according to the church affiliated groups. The loans to those Catholic organizations are worth at least $46 million. It could be far more as the loans are only reported in ranges and 13 Investigates calculated the $46 million using the lowest possible amount.
The largest in our search were to Catholic charities in Houston and in Fort Worth. Each received at least $2 million.
Schools and other church affiliated groups are on the list. It's not just churches themselves.
Newsweek reports 88,411 churches received $7.3 billion in PPP loans - not just Catholic churches but denominations of all kinds. To be eligible, the federal government's Small Business Administration had to overlook some existing rules, according to the SBA - they "decline(d) to enforce" existing rules barring some religious entities from getting SBA Loans.
That was way back in April at the start of the program. An FAQ article published on the SBA website tells non-profits, "Because those regulations bar the participation of a class of potential recipients based solely on their religious status, SBA will decline to enforce these subsections and will propose amendments to conform those regulations to the Constitution. Although 13 C.F.R. 120.110(a) states that non-profit entities are ineligible for SBA business loans (which includes the PPP program), the CARES Act explicitly makes non-profit entities eligible for the PPP program and it does so without regard to whether nonprofit enti...
Winter Appeal 2023
To our friends,
2023 has been a long year with many ups and downs for us all. As we close out the year, we at SNAP hope that you are feeling like you are on your way to being healthy, fulfilled, and happy. This past year has brought both successes and challenges. Thanks to the support you have shown in the past, we’ve been able to celebrate the good days and weather the stormy ones. Now, we are once again asking for your support as we work to support survivors new and old as we ‘Move SNAP Forward.’
At SNAP we are proud to have hosted a very well-attended conference in August 2023. This event allowed us to gather friends, survivors, advocates, and allies for a weekend of camaraderie and connection. We were so happy to be able to welcome many first-time attendees to gather in person and are already looking forward to the next conference.
To strengthen our movement for justice, healing, and prevention, SNAP will be expanding our peer support and providing more volunteer opportunities in the coming year. Through this great work, we are ensuring survivor voices are represented as we work for significant change that will benefit children and survivors.
Right now, survivors worldwide are getting the help they need from SNAP, and more and more reach out to us daily, but we need your help to keep those programs going and get our volunteers the training they need to thrive.
Your tax-deductible gift to SNAP can help offset the cost of our important mission. If you are not in a position to contribute, you can still support us by sharing this letter with those who can. As we continue to fight for survivors across the globe, your donation or sharing the great work SNAP does will help us continue our work to protect the vulnerable, heal the wounded, and prevent abuse.
Your donation ensures SNAP will be there for those who need us more than ever!
Warmly,
Michael W. McDonnell, C.P.S.
Interim Executive Director