The Small Business Administration (SBA) announced Thursday it is setting aside $10 billion of Paycheck Protection Program (PPP) Round 2 funding to be lent exclusively by Community Development Financial Institutions (CDFIs). CDFIs work to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses.
As of May 14, there are 324 credit unions certified as CDFIs, out of 1,142 total CDFIs.
The PPP ran out of its initial $349 billion in funding, and Congress approved a second round of $310 billion in April. Of that, $60 billion is allocated to insured depository institutions with below $50 billion in assets. The $10 billion set aside for CDFIs announced Thursday comes out of that $60 billion.
According to the SBA, as of May 23 CDFIs have approved more than $7 billion ($3.2 billion in Round 2) in PPP loans.