Textbook Provider for Homeschoolers Secures Government Loan

We recently represented a man who was seeking a Small Business Administration (SBA) loan for his company that sells textbooks to homeschoolers. Among other things, the company provides science textbooks that do not accept as unquestionable fact the claim that man evolved from non-living matter through a random, unguided process. The textbooks teach the subject matter (Chemistry, Biology, etc.) from a Biblical perspective, but the vast majority of the content of the textbooks is similar to what would be found in textbooks commonly used in public schools. The issue was that SBA regulations prohibit loan funding for businesses whose primary purpose is religious teaching or worship, and we argued that the business at issue did not have such a purpose.

After several months of back and forth with top attorneys in the SBA, we agreed that the business owner would make his loan application through private counsel and that the SBA would make its decision on the legal question regarding the primary purpose of the business when it was determined that all the other criteria for receiving the loan were met.

Recently, we were notified that the SBA approved the loan application. This means the SBA agreed with our argument that one does not exhibit a religious purpose by merely questioning, in a science textbook, whether Darwinian evolutionary theory conclusively explains the origin of life. The primary purpose of the company is to provide thorough and accurate textbooks that will help students to master the given subject area and prepare for college-level studies.

This is an important win because the Bush administration has been seeking to ensure that faith-based organizations are not discriminated against in government programs simply because they have a religious perspective.