House passes PPP legislation; SBA, Treasury reserve $10B in PPP funding for CDFIs

The House Thursday passed bipartisan legislation, on a 417-1 vote, to ease restrictions on how businesses use the paycheck protection program, expanding the terms of the loans. Also on Thursday, the Small Business Administration in partnership with the Treasury Department announced that $10 billion of the PPP’s round two funding will be set aside for Community Development Financial Institutions (CDFIs).

“NAFCU appreciates the Treasury Department and the SBA allocating $10 billion in PPP funding to be lent exclusively by CDFIs,” said NAFCU President and CEO Dan Berger. “NAFCU has consistently advocated for more PPP funds to be set aside for CDFIs and MDIs to ensure low-income and underserved communities have the financial resources needed to weather the pandemic.

“This decision will allow emergency capital to reach the communities that need it the most during this difficult and uncertain economic period. NAFCU will continue to advocate for additional CDFI funding,” Berger added.

The agencies indicated CDFIs have approved more than $7 billion in PPP loans as of May 23, with $3.2 billion occurring during round two.


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