Q: How do I know where my organization fits in SBA’s size standards table? Should I use the table to determine whether my organization is a small business that is eligible to participate in the PPP program?
A: SBA’s size standards can be found at 13 CFR § 121.201. Under the CARES Act, a non-profit organization qualifies as small, and is eligible for assistance, if (1) it has no more than 500 employees or (2) the NAICS code associated with its primary industry has a higher employee based size standard. Some industries—including “religious organizations”—are currently listed in the size standards table with a monetary cap on annual receipts rather than an employee-based size standards cap. For nonprofit organizations whose primary industry is listed with a monetary cap on annual receipts, the size standards table therefore cannot be used to determine eligibility for the PPP program. Faith-based nonprofit organizations that do not fall under a primary industry that is listed with an employee-based size standard must have 500 employees or fewer to be considered small.
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: https://www.sba.gov/sites/default/files/2020-04/SBA%20Faith-Based%20FAQ%20Final.pdf