SBA lenders asked to prioritize underserved communities

As the last two weeks of the Paycheck Protection Program winds down, 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 sectors of our economy, including underserved borrowers such as socially and economically disadvantaged individuals, military veterans and their spouses, women, and rural expand economic opportunity before the upcoming deadline of June 30, 2020.

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 have 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, Farm Credit System and Fintech 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. In New Jersey, that total currently stands at 136,869 PPP loan approvals for $16.8 billion for the state’s small businesses and nonprofits. 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 during these unprecedented times.

ABOUT THE U.S. SMALL BUSINESS ADMINISTRATION: The U.S. Small Business Administration makes the American dream of business ownership a reality for millions of Americans. As the only go-to resource and voice for small business backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. To learn more, visit www.sba.gov.