The Small Business Administration and the Treasury Department announced plans to set aside $10 billion of round two of Paycheck Protection Program funding for Community Development Financial Institutions.
“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 in a statement.
As of May 23, 2020, CDFIs have approved more than $7 billion ($3.2 billion in round 2) in PPP loans, according to the SBA. More than 4.4 million loans have been approved for over $510 billion for small businesses across America, the SBA noted.