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Catholic Church Granted at Least $1.4 Billion in PPP Loans

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  • An analysis from the Associated Press found that the Catholic Church received at least between $1.4 and $3.5 billion in federal coronavirus relief aid.
  • The report identified 3,500 loans the Church received from the Paycheck Protection Program, but leaders have previously stated that as many as 9,000 bodies of the Church received funding.
  • However, government data only shared who received loans over $150,000. Smaller churches that received under that amount were not on the list, meaning the Catholic Church could have collected even more than records show.
  • Usually, religious groups would not be eligible for funding from the Small Business Administration, but the Church allegedly spent a good chunk of money lobbying so that there would be an exception for the PPP.

Catholic Church Receives Billions in PPP Funds

The Catholic Church received between $1.4 and $3.5 billion in federal coronavirus relief aid, according to a Friday analysis from the Associated Press.

While houses of worship and religious organizations are usually ineligible for federal aid from the Small Business Administration, an exception was made for the Paycheck Protection Program, which was designed to keep American businesses afloat as the pandemic shut the country down.

The AP found records of 3,500 forgivable loans for Catholic dioceses, parishes, schools, and other ministries. That number, however, is likely higher.

The Diocesan Fiscal Management Conference has claimed that 9,000 Catholic bodies received loans. Government data only shared loans over $150,000, so smaller churches who got less were not on the list, meaning the Church may have pocketed even more than $3.5 billion. 

“The government grants special dispensation, and that creates a kind of structural favoritism,” Micah Schwartzman, a University of Virginia law professor told the AP. “And that favoritism was worth billions of dollars.”

According to the AP, the Archdiocese of New York received $28 million just for executive offices. St. Patrick’s Cathedral in New York City received $1 million. Diocesan officials in Orange County, California received four loans worth $3 million. The AP’s analysis suggests that the Catholic Church and its entities were able to retain 407,900 jobs with this loan money.

“These loans are an essential lifeline to help faith-based organizations to stay afloat and continue serving those in need during this crisis,” spokesperson Chieko Noguchi told the AP.

How Did the Church Get Aid?

Like many businesses throughout the country, churches had to shut their doors as large gatherings became unsafe as the coronavirus’ spread continued. Masses were canceled or moved online and celebrations for the Easter holidays were dropped, causing the Church to to fall behind financially. 

While its global net worth is not known, the Catholic Church is considered the wealthiest religious organization in the world. It is also one of the most powerful groups of any kind, with an estimated 1.2 billion followers all over the planet. According to the AP, its deep pockets and far-reaching influence helped it receive federal aid. 

The Catholic Church lobbied heavily to make sure religious groups were allowed to receive money from the PPP, the AP says. Their report found that the Los Angeles archdiocese spent $20,000 lobbying Congress to include “eligibility for non-profits” in the CARES Act, the legislation that formed the PPP. Records also show that Catholic Charities USA spent another $30,000 in CARES Act lobbying.

With its wealth and power, the Catholic Church is also plagued with controversy and scandal. For years, there have been reports that the Church has covered up for priests and other leaders who have been accused of sexual abuse. Many entities of the church have had to shell out large sums of money in legal fees and settlements. 

The AP found that around 40 of the dioceses that have paid out “hundreds of millions of dollars” to related compensation funds or bankruptcy proceedings received loans. These loans totaled at least $200 million.

See what others are saying: (Associated Press) (Business Insider) (Market Watch)

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Lincoln College to Close for Good After COVID and Ransomware Attack Ruin Finances

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Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.


One of the Only Historically Black Colleges in the Midwest Goes Down

After 157 years of educating mostly Black students in Illinois, Lincoln College will close its doors for good on Friday.

The college made the announcement last month, citing financial troubles caused by the coronavirus pandemic and a ransomware attack in December.

Enrollment dropped during the pandemic and the administration had to make costly investments in technology and campus safety measures, according to a statement from the school.

A shrinking endowment put additional pressure on the college’s budget.

The ransomware attack, which the college has said originated from Iran, thwarted admissions activities and hindered access to all institutional data. Systems for recruitment, retention, and fundraising were completely inoperable at a time when the administration needed them most.

In March, the college paid the ransom, which it has said amounted to less than $100,000. But according to Lincoln’s statement, subsequent projections showed enrollment shortfalls so significant the college would need a transformational donation or partnership to make it beyond the present semester.

The college put out a request for $50 million in a last-ditch effort to save itself, but no one came forward to provide it.

A GoFundMe aiming to raise $20 million for the college only collected $2,452 as of Tuesday.

Students and Employees Give a Bittersweet Goodbye

“The loss of history, careers, and a community of students and alumni is immense,” David Gerlach, the college’s president, said in a statement.

Lincoln counts nearly 1,000 enrolled students, and those who did not graduate this spring will leave the institution without degrees.

Gerlach has said that 22 colleges have worked with Lincoln to accept the remaining students, including their credits, tuition prices, and residency requirements.

“I was shocked and saddened by that news because of me being a freshman, so now I have to find someplace for me to go,” one student told WMBD News after the closure was announced.

When a group of students confronted Gerlach at his office about the closure, he responded with an emotional speech.

“I have been fighting hard to save this place,” he said. “But resources are resources. We’ve done everything we possibly could.”

On April 30, alumni were invited back to the campus to revisit the highlights of their college years before the institution closed.

On Saturday, the college held its final graduation ceremony, where over 200 students accepted their diplomas and Quentin Brackenridge performed the Lincoln Alma Mater.

Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.

See what others are saying: (The New York Times) (Herald Review) (CNN)

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U.S. Tops One Million Coronavirus Deaths, WHO Estimates 15 Million Worldwide

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India’s real COVID death toll stands at about 4.7 million, ten times higher than official data, the WHO estimated.


One Million Dead

The United States officially surpassed one million coronavirus deaths Wednesday, 26 months after the first death was reported in late February of 2020.

Experts believe that figure is likely an undercount, since there are around 200,000 excess deaths, though some of those may not be COVID-related.

The figure is the equivalent of the population of San Jose, the tenth-largest city in the U.S., vanishing in just over two years. To put the magnitude in visual perspective, NECN published a graphic illustrating what one million deaths looks like.

At the beginning of the pandemic, the White House predicted between 100,000 and 240,000 Americans would die from the coronavirus in a best-case scenario.

By February 2021, over half a million Americans had died of COVID.

The coronavirus has become the third leading cause of death in the U.S. behind heart disease and cancer.

The pandemic’s effects go beyond its death toll. Around a quarter of a million children have lost a caregiver to the virus, including about 200,000 who lost one or both parents. Every COVID-related death leaves an estimated nine people grieving.

The virus has hit certain industries harder than others, with food and agriculture, warehouse operations and manufacturing, and transportation and construction seeing especially high death rates.

People’s mental health has also been affected, with a study in January of five Western countries including the U.S. finding that 13% of people reported symptoms of PTSD attributable to actual or potential contact with the virus.

Fifteen Million Dead

On Thursday, the World Health Organization estimated that nearly 15 million people have died from the pandemic worldwide, a dramatic revision from the 5.4 million previously reported in official statistics.

Between January 2020 and the end of last year, the WHO estimated that between 13.3 million and 16.6 million people died either due to the coronavirus directly or because of factors somehow attributed to the pandemic’s impact on health systems, such as cancer patients who were unable to seek treatment when hospitals were full of COVID patients.

Based on that range, scientists arrived at an approximate total of 14.9 million.

The new estimate shows a 13% increase in deaths than is usually expected for a two-year period.

“This may seem like just a bean-counting exercise, but having these WHO numbers is so critical to understanding how we should combat future pandemics and continue to respond to this one,” Dr. Albert Ko, an infectious diseases specialist at the Yale School of Public Health who was not linked to the WHO research, told the Associated Press.

Most of the deaths occurred in Southeast Asia, Europe, and the Americas.

According to the WHO, India counts the most deaths by far with 4.7 million, ten times its official number.

See what others are saying: (NBC) (U.S. News and World Report) (Scientific American)

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Official Says Missing Alabama Convict and Corrections Officer Had a “Special Relationship”

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Authorities have also said they now believe the officer willfully helped the inmate escape.


New Information on Missing Inmate & Officer

Authorities in Alabama revealed Tuesday that Assistant Director of Corrections for Lauderdale County Vicky White, who is accused of helping a murder suspect Casey Cole White escape from jail, had a “special relationship” with the inmate.

“Investigators received information from inmates at the Lauderdale County Detention Center over the weekend that there was a special relationship between Director White and inmate Casey White,” Lauderdale County Sheriff Rick Singleton said in a statement. “That relationship has now been confirmed through our investigation by independent sources and means.”

Officials have previously said that the two are not related, despite their shared surname.

Singleton elaborated on the nature of the relationship while speaking to CNN later on Tuesday. He said it took place “outside of her normal work hours” and added that although it did not include “physical contact,” he still characterized it as “a relationship of a different nature.”

“We were told Casey White got special privileges and was treated differently while in the facility than the other inmates,” Singleton said.

Also on Tuesday, the Marshals Service issued a statement confirming that authorities believe Officer White had helped Mr. White escape. The authorities described her as a “wanted fugitive” and offered a $5,000 reward for any information on her whereabouts. Earlier this week, the Marshals Service also offered a $10,000 reward for any information that could lead to Mr. White’s capture.

Singleton echoed the belief that Officer White’s actions were intentional while speaking to Good Morning America Wednesday.

“I think all of our employees and myself included were really hoping that she did not participate in this willingly. But all indications are that she absolutely did,” he said. “We’re very disappointed in that because we had the utmost trust in her as an employee and as an assistant director of corrections.”

Mysterious Escape

Vicky White and Casey White were last seen leaving the Lauderdale County jail just after 9:30 a.m. Friday. The officer told other employees that she was taking the inmate to a mental health evaluation at a courthouse just down the road, and that she would be going to a medical appointment after because she was not feeling well.

Officials later said her actions violated an official policy that required two sworn deputies to transport people with murder charges. In 2020, Mr. White was charged with two counts of capital murder in connection to a fatal stabbing he confessed to and was awaiting his trial in Lauderdale County.

Mr. White was also serving time for what officials said was a “crime spree” in 2015 which included home invasion, carjacking, and a police chase. He had also previously tried to escape from jail, police said.

It wasn’t until 3:30 p.m. on Friday that a jail employee reported to higher-ups that he was not able to reach Officer White on her phone and that Mr. White had never been returned to his cell.

During a press conference that same night, Singleton told reporters that there had never even been a scheduled mental health evaluation. At another briefing Monday, he announced that an arrest warrant had been issued for Vicky on a charge of “permitting or facilitating an escape in the first degree.”

At the time, Singleton said it was unclear “whether she did that willingly or was coerced or threatened” but added, “we know for sure she did participate.” 

See what others are saying: (CNN) (ABC News) (NPR)

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