SBA announces plans to set aside $10 billion in PPP for CDFIs


The SBA, in conjunction with the U.S. Treasury Department, announced Thursday that it will set aside $10 billion of round 2 funding for the Paycheck Protection Program to be lent exclusively by CDFIs in an effort to ensure that the PPP reaches all communities in need of relief during the COVID-19 pandemic.

“CDFIs provide critically important capital and technical assistance to small businesses from rural, minority and other underserved communities, especially during this economically challenging time,” Jovita Carranza, SBA administrator, said in a press release.

The release also stated that, as of May 23, CDFIs have approved more than $7 billion ($3.2 billion in round 2) in PPP loans and 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.”

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