WASHINGTON-The Small Business Administration and the Treasury Department have announced they have set aside $10 billion of Round 2 funding for the Paycheck Protection Program (PPP) to be lent exclusively by Community Development Financial Institutions (CDFIs).
"The forgivable loan program, PPP, is dedicated to providing emergency capital to sustain our nation's small businesses, the drivers of our economy, and retain their employees," said SBA Administrator Jovita Carranza. "CDFIs provide critically important capital and technical assistance to small businesses from rural, minority and other underserved communities, especially during this economically challenging time."
As of May 23, 2020, CDFIs have approved more than $7 billion ($3.2 billion in Round 2) in PPP loans. The additional $6.8 billion will ensure that entrepreneurs and small business owners in all communities have easy access to the financial system, and that they receive much-needed capital to maintain their workforces, the SBA said.
To date, more than 4.4 million loans have been approved for over $510 billion on PPP loans. As CUToday.info has reported, the second round of funding, some $310 billion, has not been depleted as quickly as many had predicted.
NAFCU Response
“NAFCU appreciates the Treasury Department and the SBA allocating $10 billion in PPP funding to be lent exclusively by CDFIs,” said NAFCU President and CEO Dan Berger. “NAFCU has consistently advocated for more PPP funds to be set aside for CDFIs and MDIs to ensure low-income and underserved communities have the financial resources needed to weather the pandemic. This decision will allow emergency capital to reach the communities that need it the most during this difficult and uncertain economic period. NAFCU will continue to advocate for additional CDFI funding.”