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Paycheck Protection Program lending window closing; SBA asks lenders to prioritize underserved communities

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The last two weeks of the Paycheck Protection Program have arrived, and lenders are being asked to redouble their efforts to assist underserved and disadvantaged businesses and nonprofits with financing prior to the June 30 program deadline

Authorities say the key to the success of the program is ensuring the cash infusion reaches all areas of the economy, including underserved borrowers such as socially and economically disadvantaged individuals, military veterans and their spouses, women, and rural communities.

Thus far, there has been $10 billion of Round Two funding provided exclusively by Community Development Financial Institutions.

“We recognize that SBA-approved PPP institutions like CDFIs, Minority Depository Institutions, Certified Development Companies, and Farm Credit System lenders are leading the way to serve individual entrepreneurs and small businesses in underserved communities. As it stands, SBA has already served more than 4.5 million businesses and nonprofits through PPP, infusing more than $500 billion into the economy. Last week’s surprise drop in unemployment is a direct result of PPP keeping Americans on the payroll.

“With more than $100 billion still available, now is the perfect time for underrepresented small business owners to work with their preferred lender, or find a new lender at https://www.sba.gov/paycheckprotection/find to apply for their own PPP loan to help their business and their employees survive and thrive.”

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