Disclosed is an emulsion of an internal paper size and a biocidal emulsifying agent, such as a cationic non-starchy quaternary ammonium compounds, that is introduced into a paper-making furnish to produce an anti-microbial paper. The antimicrobial paper is useful as facing for gypsum panels. A method of making the paper includes emulsifying the internal size with a biocide before introducing the size to the paper furnish. The disclosed method of making a mold-resistant gypsum panel comprises the steps of: selecting a biocidal emulsifying agent, wherein the biocidal emulsifying agent is a non-starchy quaternary ammonium compound; emulsifying an alkenyl succinic anhydride or alkyl ketene dimer internal sizing agent with the biocidal emulsifying agent to form a biocidal sizing emulsion in water; adding the biocidal sizing emulsion to a paper furnish; making a facer from the paper furnish; preparing a slurry of calcium sulfate hemihydrate and water; depositing the slurry onto the facer; forming the slurry into a microorganism–resistant gypsum panel; and allowing the slurry to set.