SBA and Treasury Department Set Aside $10 Billion for CDFIs to Participate in the Paycheck Protection Program
“On June 12th, 2020, the U.S. Small Business Administration, in consultation with the U.S. Treasury Department, announced that it is setting aside $10 billion of Round 2 funding for the Paycheck Protection Program (PPP) to be lent exclusively by Opportunity Finance Network. CDFIs work to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses. These dedicated funds will further ensure that the PPP reaches all communities in need of relief during the COVID-19 pandemic – a key priority for President Trump.
“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.”
“The PPP has helped over 50 million American workers stay connected to their jobs and over 4 million small businesses get much-needed relief,” said Treasury Secretary Steven T. Mnuchin. “We have received bipartisan support for dedicating these funds for CDFIs to ensure that traditionally underserved communities have every opportunity to emerge from the pandemic stronger than before.”
The $10 billion set-aside in Round 2, combined with $3.8 billion in Round 1 CDFI approvals, 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 has a mission: ensure all small businesses and their employees are not forgotten. Our federal agency is here to provide help during this critical time, to the small businesses and entrepreneurs who define a community’s character. We’re here to give a hand up to the stores and small business owners who are part of our communities. For many women and minority-owned small businesses that have not yet been able to take advantage of PPP, the SBA has set-aside this money to access,” stated SBA New York District Director Beth Goldberg.
According to Goldberg, Metro New York small business owners may also use the CDFI locator at https://ofn.org/cdfi-coverage-map to find CDFIs that are currently active in the Paycheck Protection Program in the Empire State.
“Providing American businesses with access to federally-guaranteed capital ensures underserved communities are not left out of our COVID-19 recovery. No longer will small business owners in underserved communities just hear about the money. With today’s action, more minority-owned small businesses will be able to access it to survive, thrive and help support our economy,” said SBA Atlantic Regional Administrator Steve Bulger.
The Paycheck Protection Program was created by the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) and provides forgivable loans to small businesses affected by the COVID-19 pandemic to keep their employees on the payroll. To date, more than 4.4 million loans have been approved for over $510 billion for small businesses across America.
The SBA and the Treasury Department remain committed to ensuring eligible small businesses have the resources they need to get through this time.”