Pastor Joel Osteen and his Lakewood Church in Texas face backlash after it was revealed his megachurch received a $4.
4 million Paycheck Protection Program loan as part of the federal CARES Act.
The news comes after Lakewood officials said that they had not applied for a loan through PPP earlier this year.
Lakewood’s spokesperson was quick to do damage control and released the statement in an attempt to quiet down the issue.
According to them, the loan was used to pay the wages of 368 full-time and part-time employees, as the suspension of in-person services between March and October impacted their ability to collect substantial donations from its members.
“Believing the shutdown would only last a few weeks, Lakewood did not initially apply for PPP assistance during the first half of the program,” the statement reads.
“As the shutdown persisted month after month, given the economic uncertainty, Lakewood finally applied for the PPP loan and has been able to provide full salaries and benefits including health insurance coverage to all of its employees and their families.”
To keep workers on the payroll amid the COVID-19 pandemic, the government whipped up CARES Act stimulus package that allows small businesses to apply for PPP loans with their banks.
Houses of worship, which are not required to pay taxes, were among those eligible to apply for the stimulus funding.
The multimillionaire televangelist-led megachurch, which draws in about 52,000 congregants per week, received the $4.4 million loan via Bank of America in mid-July, making it the third highest handed out in Houston.
The spokesperson clarified that Osteen and his wife Victoria did not receive any financial benefit from the loan.
“It is important to note that, since 2004, Pastors Joel and Victoria Osteen have not received salaries from Lakewood Church, and the PPP funds do not provide any personal financial benefit to them, whatsoever,” the spokesperson said.