May 28, 2020 - The U.S. Small Business Association and Treasury just announced that $10 billion of Round 2 funding for the Paycheck Protection Program (PPP) will be lent exclusively by Community Development Financial Institutions (CDFIs) across the nation. CDFIs are positioned to deliver access to capital in our underserved communities. As of May 23, 2020, CDFIs have approved over $7 billion ($3.2 billion in Round 2) in PPP loans.
“Today we are witnessing further momentum coming off incredible community mobilization. We have engaged and received support from music influencers, the sports industry, faith-based communities and the small business communities across this nation.” says Ashley D. Bell, SBA Regional Administrator and Entrepreneurship Policy Advisor for the White House Opportunity & Revitalization Council. “With this $10 billion in resources for our mission-based lenders and for technical assistance, we will be able to bring home the capital these communities desperately need.”
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.