Banks Block Black Churches From Receiving Aid

Church building
Brooke Brown
November 1, 2020

Black churches were hit hard financially by the absence of their congregations during pandemic-related shut downs. But a lack of attendance was just the beginning of their troubles.

The lack of income hurt their ability to keep need-based programs like rent relief and food pantries open and even to pay staff. 

Word spread quickly that churches were eligible for a portion of the billions of dollars in Paycheck Protection Program (PPP) loans being dispensed by banks on behalf of the Small Business Administration (SBA). Church leadership sprang into action – but more bad news soon followed.

President and CEO of the NAACP Derrick Johnson shared with NPR that "[Black churches] have [suffered a] lack of responsiveness from the banks to which they have submitted applications.”

It seems that quality customer service was reserved for larger firms with experienced finance and legal counsel, who had relationships with banks and/or SBA, or who had the resources to learn of the availability of funds and their eligibility to qualify in real time. 

Low-income churches serving predominantly Black communities never stood a chance.

PPP loan roadblocks aside, one question still remains: will worship centers survive long enough to invest in the technology needed to reach the members they serve, and collect the income they’re so desperately in need of? Only time will tell.

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