SBA PPP loans and civil rights obligations

The PPP application requires applicants to certify that they will comply, where applicable, with certain civil rights laws. Specifically, all businesses receiving financial assistance from the SBA must make a commitment not to discriminate in any business practice, including employment practices and service to the public on the basis of the categories cited in parts 112 (race , color, national origin), 113 (gender) and 117 (age) of the SBA regulations. All borrowers must display the SBA-mandated “Equal Employment Opportunity Poster”, which is available here.

Part 112 of the SBA regulations implements Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, or national origin in any supported program or activity. federal financial. Part 113 implements Title IX of the 1972 Education Amendments, which prohibits discrimination based on sex in any education program or activity that receives federal funding. Part 117 implements the Age Discrimination Act, which prohibits discrimination on the basis of age in any program or activity that receives financial assistance. For camps and schools, it is important to note that federal funding recipients may continue to use certain age distinctions when necessary for their normal operations.

Recipients of PPP loans are also subject to Section 504 of the Rehabilitation Act, which prohibits discrimination on the basis of disability in programs or activities that receive federal financial assistance. However, there is a significant overlap between Section 504 and the Americans with Disabilities Act, which requires public accommodations not to discriminate on the basis of disability.

There are many nuances in regulation, but in general an organization should have a non-discrimination policy that prohibits discrimination based on race, color, religion, sex, marital status, disability, l ‘age or national origin (the categories covered by the SBA Equal Employment Opportunity Poster) and covers any of its services, activities or accommodations provided to employees, clients or guests.

Organizations that offer training programs or activities must comply with additional requirements under Title IX regulations of the SBA, including the designation of a responsible employee to coordinate their efforts to comply and fulfill the requirements. organizational responsibilities under Title IX regulations; and the adoption and publication of grievance procedures that provide for prompt and fair resolution of student and employee complaints alleging any action that would be prohibited by the regulations. The SBA Title IX regulations do not apply to entities controlled by a religious organization to the extent that the application of Title IX regulations would not be consistent with the religious principles of the organization. An educational institution or other entity that wishes to request religious exemption must do so by submitting a written statement from the institution’s most senior official, identifying the provisions of Title IX regulations that conflict with a specific principle of religious organization. Title IX regulations also do not apply to some organizations serving members and youth, such as fraternities, sororities, the YMCA, YWCA, Girl Scouts, Boy Scouts and some voluntary youth service organizations. .