At least 50 Texas churches received $1 million or more in PPP loans

At least 50 Texas churches received $1 million or more in PPP loans

SAN ANTONIO – Knowledge from the Small Enterprise Administration exhibits that at the least 50 Texas church buildings acquired $1 million or extra in loans from the Paycheck Safety Program.

The federal program, often known as PPP, was designed as an incentive for small companies to maintain staff on the payroll after the financial fallout from the coronavirus pandemic which shuttered doorways to companies all over the world.

The taxpayer-funded program has confronted criticism, nonetheless, after many small, minority-owned companies say they had been denied loans “whereas bigger enterprises just like the Los Angeles Lakers and Shake Shack had been awarded thousands and thousands in loans,” reported. Questions on enforcement and comparatively broad eligibility necessities have swirled this yr.

The Code of Federal Rules explicitly states that nonprofit entities are ineligible for Small Enterprise Administration (SBA) loans, nonetheless, the “CARES Act explicitly makes nonprofit entities eligible for the PPP program and it does so with out regard as to if nonprofit entities present secular social companies,” in line with the SBA.

Like different nonprofits, church buildings are exempt from paying many taxes, main many on social media to criticize megachurches for acquiring the loans. Most just lately, Joel Osteen’s Houston megachurch made headlines after it was reported that Lakewood Church acquired $4.4 million in federal PPP loans.

Osteen’s church defended it’s mortgage, saying that Osteen, who’s value thousands and thousands, didn’t obtain any private profit and that tons of of its staff have been receiving “full salaries and advantages together with medical health insurance protection to all of its staff and their households” due to this system.

Church buildings and spiritual organizations, like different charitable organizations, obtain sure exemptions from federal, state and native earnings taxes, below Part 501(c)(3), in line with the IRS.

Of the 50 church buildings KSAT present in knowledge supplied by the SBA, 9 acquired someplace between $2-5 million in PPP loans, together with seven within the Houston space. The opposite two church buildings to obtain $2 million or extra are situated in Dallas and Rockwall. (See the total record on the backside of this text.)

In San Antonio, the Catholic Archdiocese and Catholic Charities every acquired PPP loans between $1-2 million together with Concordia Lutheran Church and Oak Hills Church.

At the very least one of many standards of eligibility for a PPP mortgage is that an entity should have “500 or fewer staff whose principal place of residence is in america or are a enterprise that operates in a sure trade and meet the relevant SBA employee-based dimension requirements for that trade,” in line with the Federal Register. As a way to have the mortgage absolutely forgiven, the PPP mortgage have to be used for payroll prices, curiosity on mortgages, lease and utilities.

Concordia Lutheran Church situated at 16801 Huebner Street reported that 100 jobs can be affected by the PPP mortgage and Oak Hills Church on Camp Bullis Street reported 141 jobs.

Catholic Archdioceses utilized individually from Catholic Charities and town’s Catholic colleges. Central Catholic Excessive College, a Catholic college in San Antonio acquired greater than $1 million in loans however we didn’t embrace it in our record of church buildings.

When KSAT compiled an inventory of probably the most notable San Antonio entities that requested PPP loans, the Archdiocese of San Antonio and different Catholic entities mixed topped the record, receiving someplace between $2-5 million in loans.

A CBS report from May notes that greater than 12,000 Catholic church buildings within the U.S. utilized for PPP loans – and 9,000 obtained them.

Moreover, the Related Press reported in July that the U.S. Roman Catholic Church “used a particular and unprecedented exemption from federal guidelines to amass at the least $1.4 billion in taxpayer-backed coronavirus help, with many thousands and thousands going to dioceses which have paid enormous settlements or sought chapter safety due to clergy sexual abuse cover-ups.”

Beneath are a number of the criticisms by Twitter customers:

As of Aug. 8, the deadline to submit an software for a PPP mortgage, greater than 5 million loans had been accredited as a part of the Paycheck Safety Program with greater than $525 billion given to companies and different entities, in line with the SBA. The typical mortgage dimension is $100,729.

KSAT compiled an inventory of Texas church buildings that acquired loans between $1-5 million.

The church buildings that acquired greater than $2 million are: Chapelwood United Methodist Church in Houston, First Baptist Church of Dallas (led by Robert Jeffress), Archdiocese of Galveston-Houston, Catholic Charities of the Archdiocese of Galveston-Houston, First Baptist Church of Houston, Lake Pointe Baptist Church in Rockwall, Osteen’s Lakewood Church in Houston, St. Luke’s United Methodist Church of Houston and St. Martin’s Episcopal Church of Houston.

The next record solely consists of faith-based organizations which have “church” or “archdiocese” of their names:

Copyright 2020 by KSAT – All rights reserved.

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