SBA / Faith Based FAQ – 7. Does my faith-based organization need to apply for this exemption or include any documentation... to fall within this affiliation exemption?

Compliance > CARES Act
Q:  Does my faith-based organization need to apply for this exemption or include any documentation of its religious beliefs or practices to fall within this affiliation exemption?
A:  No specific process or detailed filing is necessary to claim the benefit of this exemption. If you believe that your organization qualifies for this exemption to the affiliation rules, you should submit with your loan application a separate sheet stating as much. That sheet may be identified as addendum A, and no further listing of the other organizations with which your
organization is affiliated, or description of the relationship to those organizations, is required. You are not required to describe your religious beliefs.

A sample “Addendum A” is attached to this document, but you may choose to write your own.  Your statement can be very simple.


✓ The Applicant claims an exemption from all SBA affiliation rules applicable to Paycheck Protection Program loan eligibility because the Applicant has made a reasonable, good faith determination that the Applicant qualifies for a religious exemption under 13 C.F.R. 121.103(b)(10), which says that “[t]he relationship of a faith-based organization to another organization is not considered an affiliation with the other organization . . . if the relationship is based on a religious teaching or belief or otherwise constitutes a part of the exercise of religion.”
This Q&A was based on information contained in the SBA’s “Frequently Asked Questions Regarding Participation of Faith-based Organizations in the Paycheck protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL)” dated 4/3/2020.  This CARES Act / SBA / PPP related issuance which addresses faith based organizations, including houses of worship (such as a church, temple, mosque, or synagogue) may be found here:

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