The PPP Application requires applicants to certify that they will comply, whenever applicable, with certain civil rights laws. Specifically, all businesses receiving SBA financial assistance must agree not to discriminate in any business practice, including employment practices and services to the public on the basis of categories cited in Parts 112 (race, color, national origin), 113 (sex), and 117 (age) of SBA regulations. All borrowers must display the "Equal Employment Opportunity Poster" prescribed by SBA, 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 program or activity that receives federal financial assistance. Part 113 effectuates Title IX of the Education Amendments of 1972, which prohibits sex discrimination in any education program or activity receiving federal financial assistance. Part 117 implements the Age Discrimination Act, which prohibits age discrimination in any program or activity receiving financial assistance. For camps and schools, it is important to note that recipients of federal funds may continue to use certain age distinctions when necessary for their normal operations.

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

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

Organizations that provide education programs or activities must comply with additional requirements under the SBA’s Title IX regulations, including designation of a responsible employee to coordinate its efforts to comply with and carry out the organization’s responsibilities under the Title IX regulations and adoption and publication of grievance procedures that provide for prompt and equitable resolution of student and employee complaints alleging any action that would be prohibited by the regulations. The SBA’s Title IX regulations do not apply to entities that are controlled by a religious organization to the extent that application of the Title IX regulations would not be consistent with the religious tenets of the organization. An educational institution or other entity that wishes to claim the religious exemption must do so by submitting a written statement by the highest-ranking official of the institution, identifying the provisions of the Title IX regulations that conflict with a specific tenet of the religious organization. The Title IX regulations also do not apply to certain membership and youth serving organizations, such as fraternities, sororities, YMCA, YWCA, Girls Scouts, Boy Scouts, and certain voluntary youth service organizations.

We are happy to review your policies and procedures for compliance with the SBA’s civil rights obligations and/or provide training to key personnel.

To learn more about the issues raised by this client bulletin, please contact Catherine Guttman-McCabe at
Note: This bulletin is for general use and should not be construed to provide legal advice as to particular factual situations.

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