SBA designates $10 billion in Paycheck Protection loans for CDFIs

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The Small Business Administration has set aside $10 billion in Paycheck Protection Program funds for community development financial institutions.

The SBA and the Treasury Department said in a press release that the funds will ensure PPP loans reach low-income communities.

“The forgivable loan program ... is dedicated to providing emergency capital to sustain our nation’s small businesses, the drivers of our economy, and retain their employees,” SBA Administrator Jovita Carranza said. “CDFIs provide critically important capital and technical assistance to small businesses from rural, minority and other underserved communities, especially during this economically challenging time.”

“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,” Treasury Secretary Steven Mnuchin said.

The $10 billion includes $3.2 billion in funds that CDFIs had already approved during the program's second round. Overall, CDFIs have approved roughly $7 billion in PPP loans.

This article originally appeared in American Banker.
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CDFIs Paycheck Protection Program SBA Treasury Department Coronavirus Steven Mnuchin