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Jul 15, 2025  |  
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Ross O'Keefe


NextImg:SBA axes rule banning faith-based groups from receiving disaster loans

Small Business Administration officials announced Monday that they are eliminating a rule banning faith-based groups from receiving SBA disaster loans.

“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,” SBA Administrator Kelly Loeffler said in a statement shared with the Washington Examiner.

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“We are thrilled to announce our first-ever Center for Faith at the SBA to improve access to agency resources for the faith community, ensuring that all SBA programs are accessible to eligible Americans regardless of their religious affiliation,” she added. “We are proud to uphold the principles of religious freedom that our nation was founded on – and look forward to forging lasting relationships that bring new small businesses into the SBA ecosystem.”

SBA officials said the rule was a “Biden ban” on disaster loans to faith groups, though it predated the Biden administration. The first Trump administration would not enforce existing SBA regulations on “businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs” that had been ineligible for SBA loans.

Loeffler’s agency cited a 2016 Supreme Court ruling that held that a religion-based Missouri preschool and daycare center could not be denied public benefits due to its religious status. The SBA will make faith organizations eligible for agency disaster relief in the aftermath of a tragedy “effective immediately.”

SBA loans are sought after because of their lower interest rates and better financing than private loans.

Agency officials also announced the formation of a new faith office aiming to “empower faith-based businesses, community organizations, and houses of worship with access to capital, counseling, and government contracting opportunities.”

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The SBA’s ruling coincides with President Donald Trump’s attendance at a White House Faith Office luncheon on Monday.

The Washington Examiner reached out to the SBA for additional comment but did not receive a response.