WASHINGTON, D.C. — The U.S. Small Business Administration (SBA) has announced a significant policy shift and institutional initiative aimed at enhancing access for religious organizations and faith-based businesses. On Monday, July 14, the agency unveiled its new Center for Faith, a dedicated division designed to extend SBA resources—including capital access, business counseling, and federal contracting opportunities—to religiously affiliated organizations.
This move coincides with the elimination of a longstanding regulation that excluded faith-based entities from receiving SBA disaster relief loans, a policy critics argued amounted to religious discrimination. Under the new directive, faith-driven organizations are now eligible to receive support under the SBA’s Economic Injury Disaster Loan (EIDL) program and other forms of assistance.
“The SBA is committed to ending the era of weaponized government that has systematically discriminated against Americans of faith—even denying them access to vital disaster relief in times of tragedy,” said SBA Administrator Kelly Loeffler. She emphasized that the Center for Faith will ensure equitable access to SBA programs for all Americans, “regardless of their religious affiliation.”
The rule reversal marks a major departure from the previous administration’s stance, which upheld a regulation barring organizations “principally engaged in teaching, instructing, counseling, or indoctrinating religion” from qualifying for disaster loans—even after the U.S. Supreme Court ruled such restrictions unconstitutional.
The newly established Center for Faith will operate within the SBA’s Office of Economic Development, pursuant to Executive Order 14205. Its mandate is to foster collaboration with religious institutions and promote inclusion of faith-based actors in SBA’s broader economic initiatives.
By removing regulatory barriers and reinforcing constitutional protections for religious freedom, the SBA under Administrator Loeffler seeks to integrate houses of worship and other faith organizations more fully into the small business ecosystem.
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