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Paycheck Protection Program lending window closing

By on June 16, 2020

SBA asks lenders to prioritize underserved communities

By SBA Atlantic Regional Administrator Steve Bulger

The last two weeks of the Paycheck Protection Program are upon us. The U.S. Small Business Administration continues to work with lenders to prioritize access to capital and loan forgiveness for those who qualify. Key to the success of this program is ensuring the cash infusion reaches all areas of our economy, including underserved borrowers such as socially and economically disadvantaged individuals, military veterans and their spouses, women, and rural communities.

SBA Administrator Jovita Carranza recently reached out to the SBA’s lender network to ask them to redouble their efforts to assist underserved and disadvantaged businesses as well as nonprofits with PPP financing, allowing our federal agency to expand economic opportunity before the upcoming deadline of June 30, 2020. We’ve seen success in these areas thanks to the dedicated $10 billion of Round Two funding provided exclusively by Community Development Financial Institutions.

We recognize that SBA-approved PPP institutions like CDFIs, Minority Depository Institutions, Certified Development Companies, and Farm Credit System lenders are leading the way to serve individual entrepreneurs and small businesses in underserved communities. As it stands, SBA has already served more than 4.5 million small businesses and nonprofits through PPP, infusing more than $500 billion into our economy. Last week’s surprise drop in unemployment is a direct result of PPP keeping Americans on the payroll – and May’s retail surge of 17.7% is the largest monthly jump ever.

SBA is dedicated to sustaining our nation’s small businesses and retaining tens of millions of employees – a key priority for President Trump. With more than $100B still available, now is the perfect time for underrepresented small business owners to work with their preferred lender, or find a new lender at https://www.sba.gov/paycheckprotection/find to apply for their own PPP loan to help their business and their employees survive and thrive.

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