On Jan. 11, the federal government announced it would reserve a portion of Paycheck Protection Program loan funds for use by Community Financial Institutions, such as MMCDC, an approved PPP lender.
MMCDC will provide PPP loans to businesses meeting its criteria.
Our loans are designed for those businesses with a limited number of employees and that may face barriers accessing PPP funds, with a primary focus on rural businesses. — MMCDC President Julia Nelmark
As a Community Development Financial Institution, MMCDC has a special focus on businesses in Minnesota Investment Areas (low-income communities), as defined by the Community Development Financial Institutions Fund; Native American-owned businesses; and women-owned businesses. Eligible areas can be found by MMCDC staff based upon business address. Other businesses also may qualify based upon the income of the business owner.
The U.S. Small Business Administration indicated at least $15 billion would be reserved for Community Financial Institutions to support underserved small businesses.
As an Approved PPP Lender, MMCDC works with borrowers to complete their PPP First Draw Borrower Application Form or PPP Second Draw Borrower Application Form, as appropriate. Interested business operators are encouraged to contact Nicole Kirchner, Vice President, Business Development.
“We are pleased to have opened PPP loans to CDFIs, MDIs, CDCs, and Microloan Intermediaries. The PPP is already providing America’s small businesses hardest hit by the pandemic with vital economic relief,” said Secretary of the Treasury Steven T. Mnuchin in an SBA news release. “As the Program re-opens for all First and Second Draw borrowers next week, the PPP will allow small businesses to keep workers on payroll and connected to their health insurance.”
First Draw PPP Loans are for those borrowers who have not received a PPP loan before August 8, 2020. The first round of the PPP, which ran from March to August 2020, was a historic success helping 5.2 million small businesses keep 51 million American workers employed.
Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.