Community Financial Institutions to Get $10B for PPP Participation
May 28, 2020—On Thursday, the U.S. Small Business Administration, along with the U.S. Treasury Department, announced that it is setting aside $10 billion of round two funding for the Paycheck Protection Program (PPP) to be lent exclusively by Community Development Financial Institutions (CDFIs), which work to expand economic opportunity in low-income communities, according to a press release.
According to the release, CDFIs have approved more than $7 billion ($3.2 billion in round-two funding) in PPP loans. The additional $6.8 billion will ensure business owners will have easy access to resources, and that they receive the funds they need to maintain their livelihood.
CDFIs work to provide access to financial products and services for local residents and businesses. These dedicated funds aims to further ensure that the PPP reaches all communities in need of relief during the pandemic.