CDFIs to exclusively lend $10 billion in PPP funding

Federal Issues SBA Department of Treasury Small Business Lending Covid-19

On May 28, the SBA, in consultation with the Treasury Department, announced that $10 billion of Round 2 funding for the Paycheck Protection Program (PPP) will be lent exclusively by Community Development Financial Institutions (CDFIs) to ensure that “the PPP reaches all communities in need of relief during the Covid-19 pandemic.” SBA Administrator Jovita Carranza stated, “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 announcement notes that as of May 23, CDFIs have approved more than $7 billion in PPP loans, including $3.2 billion in Round 2 funding, leaving a balance of $6.8 billion in Round 2.