The Paycheck Protection Program (PPP) should be extended through Dec. 31, CUNA and hundreds of national and state organizations wrote to Congressional leadership this week. The PPP was reauthorized at up to $284 billion starting Jan. 11 and is scheduled to close March 31.
“Despite the breadth of this emergency aid, small businesses continue to struggle, especially minority-owned businesses. Survey data show that 66% of minority-owned small businesses fear permanent closure due to the pandemic compared to 57% of non-minority-owned firms,” the letter reads. “The same report shows that minorities have a harder time accessing the capital needed to keep their businesses open.
“More recent data show neighborhoods with a higher concentration of minority-owned businesses are experiencing higher business closure rates (36%) compared to businesses in non-minority communities (22%),” it adds.
Credit unions made more than 204,000 Paycheck Protection Program (PPP) loans totaling $9.7 billion, averaging $47,624 each through the program's first round.