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.
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