Taking a second COVID-era loan is proving costly to some faith groups
(RNS) — A dispute over a single word in a COVID-era relief law — and the political divides over Israel – have cost a Jewish advocacy group dearly. Jewish Voice for Peace, a Washington, D.C.-based anti-Zionist nonprofit, agreed in mid-January to pay $677,634 to settle allegations made by a pro-Israel lawyer that the progressive Jewish organization had fraudulently received a second Paycheck Protection Program loan. At issue was a provision in the Coronavirus Aid, Relief and Economic Security Act, or CARES Act, that authorized the PPP COVID-era loans, which banned groups that “primarily engaged in political or lobbying activities” from applying for a second loan. Jewish Voice for Peace, while it opposes military aid for Israel and supports “Palestinian liberation,” said its activities are not primarily political. The Department of Justice disagreed. The department also alleged that JVP committed fraud by checking a box on an application for a $338,817 loan that said the group was not primarily political. That loan was granted in September 2021 and forgiven later that year. To avoid a costly …