Skip to main content
Tags: ppp | loans | payroll protection program | community banks | stimulus

Treasury Sets Aside $10B of PPP Funds for Community Banks

a computer keyboard shows a key that reads payroll protection program
(Dreamstime)

By    |   Thursday, 28 May 2020 04:15 PM EDT

The Paycheck Protection Program (PPP) will designate $10 billion to banks to lend money to low-income communities.

The Small Business Administration (SBA) and Treasury Department announced Thursday  an additional $6.8 billion in PPP loans will be set aside for community development financial institutions to loan out to small businesses to keep workers employed.

That is in addition to the $3.2 billion that has already been approved by CDFIs after funding became available once the stimulus bill passed in April.

"The forgivable loan program, PPP, 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 in a statement. "CDFIs provide critically important capital and technical assistance to small businesses from rural, minority and other underserved communities, especially during this economically challenging time."

PPP help to pay out loans to small businesses that will be forgiven if most of the money is used for payroll.

Congress funded $349 billion for PPP in legislation before Trump signed the bill in late March. Once the funds were spent, Congress passed another bill in April that gave $310 billion to PPP.

"I want to thank Secretary Mnuchin for heeding our calls to set aside a pool of funding specifically designated for lending by CDFIs, and now we're urging him to move on and include Minority Depository Institutions as well – since they, too, are critical to expanding access to communities of color," Schumer said in a statement.

© 2024 Newsmax. All rights reserved.


Politics
To lend money to low-income communities, the Paycheck Protection Program (PPP) will designate $10 billion to banks.
ppp, loans, payroll protection program, community banks, stimulus
250
2020-15-28
Thursday, 28 May 2020 04:15 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
Get the NewsmaxTV App for iOS Get the NewsmaxTV App for Android Scan QR code to get the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved