On the announcement that $10 Billion of PPP Loan dollars will be set aside for CDFIs today, Executive Director of the Main Street Alliance, Amanda Ballantyne had this to say:
“We applaud the Treasury Department for delineating specific dollars for Community Development Financial Institutions, as separate from small banks in the PPP program. CDFIs are important financial institutions for many of our nation’s smallest businesses, and many target small businesses that have been left behind by the program such as minority-owned, women-owned, veteran and disability-owned businesses.
Organizations like Main Street Alliance have been calling for this set-aside for months. This wait has led to significantly higher rates of business closures among African American and Latinx business owners, which will have a deep and lasting impact on communities of color.While this set-aside is important, we must push for direct funding to our smallest businesses through simple grant and subsidy programs, not loan applications that have left so many behind. Terms of the PPP loans, make loan forgiveness far too uncertain, and will likely leave many small businesses in debt in an uncertain economy.
A set-aside to CDFIs is important, but not enough to change the course of this extinction-level event.”