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Ensuring Minority Depository Institutions and Community Development Financial Institutions Get Fair Share of Funds Allocated by the Paycheck Protection Increase Act of 2020

April 26, 2020
Consumer Finance
Letters to Congress

From the letter to Secretary Mnuchin:

The undersigned civil rights, faith, and community development organizations write to seek that you direct the Small Business Administration (SBA) to  designate that Community Financial institutions (CFIs) receive one-third of the $30 billion set aside for three groups of lenders—CFIs, small insured depository institutions, and credit unions—pursuant to H.R. 266, the Paycheck Protection Program and Health Care Enhancement Act. Of the three groups of lenders, only CFIs aim specifically at serving communities of color. Congress included them in the $30 billion set-aside in order to correct the problem that businesses of color were almost entirely excluded from the first round of funding under the SBA’s Paycheck Protection Program (PPP). It is anticipated that the PPP funding will once again be exhausted quickly. Reserving $10 billion to CFIs is the only way to ensure that businesses of color have access to this lifeline before the money runs out.