SBA and Treasury Department Announce $10 Billion for CDFIs to Participate in the Paycheck Protection Program

WASHINGTON – Today, the U.S. Small Business Administration, in consultation with the U.S. Treasury Department, announced $10 billion of Paycheck Protection Program (PPP) Round 2 funding will be lent exclusively by Community Development Financial Institutions (CDFIs). CDFIs expand economic opportunity in low-income communities by providing financial products and services for residents and local businesses. These dedicated funds ensure PPP funds reach all communities in need of relief during the COVID-19 pandemic.

“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– a key priority for President Trump,” 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 additional $10 billion in Round 2, combined with CDFI approvals of $3.8 billion in Round 1, ensures entrepreneurs and small business owners in all communities have easy access to the financial system, and receive much-needed capital to maintain their workforces.

“Providing American businesses with access to federally-guaranteed capital ensures underserved communities are not left out of our COVID-19 recovery, said SBA Mid-Atlantic Regional Administrator Steve Bulger. 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 support our economy.”

The PPP 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.