The U.S. Roman Catholic Church raked in between $1.4 billion and $3.5 billion in federal coronavirus aid, making it one of the top beneficiaries of the government's Paycheck Protection Program.
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The church tapped a loophole left open in the PPP initiative by Congress, which expanded access to the government's fiscal stimulus for faith groups and other nonprofits who otherwise may have been left out and are facing financial distress due to the pandemic.
Catholic dioceses, parishes, schools and other ministries have so far received approval for at least 3,500 forgivable loans after pouring resources into shepherding national affiliates to apply for money from the Small Business Administration, according to reports by the Associated Press.
After lobbying in Washington, religious groups simultaneously persuaded the Trump administration to forgo a major consideration that disqualifies applicants from receiving a loan if they have more than 500 employees.
In doing so, nearly 9,000 entities of the Roman Catholic Church -- several of which have faced lawsuits and have already verged on bankruptcy because of clergy sexual abuse scandals pre-COVID-19 -- qualified for the loans, which will be forgiven by the government if they are used for wages, rent and utilities.
The government awarded $2 million to the diocese covering Wheeling-Charleston, W. Va., where a church investigation revealed last year that then-Bishop Michael Bransfield embezzled funds and made sexual advances toward young priests.
The Diocese of Erie, Pa., where the parish was forced to settle $12 million in sexual abuse lawsuits and establish a compensation fund for victims, told the AP that approximately 80 affiliated organizations including schools and parishes received $10.3 million in paycheck protection loans, while its administrative offices received nearly $883,000.
The Archdiocese of New York received 15 loans worth at least $28 million for its top executive offices. Its iconic St. Patrick’s Cathedral on Fifth Avenue was approved for at least $1 million.
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Meanwhile, the New York diocese announced Friday they will be shuttering 20 Catholic schools and merging three others, citing financial issues and low registration due to the pandemic.
The Associated Press contributed to this report.