On May 28, the federal government announced it would reserve a portion of Paycheck Protection Program funds for use by Community Development Financial Institutions, such as MMCDC.
“These loans are advantageous, so we encourage business owners to contact our Vice President of Business Development, Nicole Kirchner, to discuss this and other loan opportunities available to keep businesses on track during the pandemic.” — MMCDC President Julia Nelmark
This federally backed loan program offers flexible financing at below-market rates and terms to support COVID-19-impacted businesses. Borrowers may be eligible for full or partial loan forgiveness when they use funds to maintain or rehire staff, and to pay rent, utilities, and interest on mortgages.
The U.S. Small Business Administration and the Department of the Treasury indicated $10 billion would be reserved for CDFIs.
“The forgivable loan program, PPP, is dedicated to providing emergency capital to sustain our nation’s small businesses, the drivers of our economy, and retain their employees,” said SBA Administrator Jovita Carranza in a press release. “CDFIs provide critically important capital and technical assistance to small businesses from rural, minority and other underserved communities, especially during this economically challenging time.”
“The PPP has helped over 50 million American workers stay connected to their jobs and over 4 million small businesses get much-needed relief,” said Treasury Secretary Steven T. Mnuchin in the same release. “We have received bipartisan support for dedicating these funds for CDFIs to ensure that traditionally underserved communities have every opportunity to emerge from the pandemic stronger than before.”