Community Development Funds get More Support to Relieve Minority Businesses
An NBC News analysis last year of PPP data, census records and a leading economic distress indicator show that struggling American communities received less from the PPP program proportionally than the country's wealthier and more vibrant neighborhoods. Economically distressed communities — in which minorities make up a greater share of the population than more prosperous communities — fared worse than the country's wealthiest communities when it came to getting Paycheck Protection Program loans. Shortly after the PPP got more funding from Congress in late April, the SBA began to position CDFIs as the ticket to reaching minority small-business owners. The second infusion of capital, which came in April, allocated $10 billion in PPP loans for CDFIs alone. When the second round reopened last month, CDFIs were given the first draw of funds from the SBA.