The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, today 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 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. 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.