Overlooked Community Lenders Seek Aid After Missing Loan Frenzy
Congress provided a lifeline for small businesses in late March: the Paycheck Protection Program, a $349 billion program to facilitate government-backed, forgivable loans intended to keep businesses afloat. Demand was high when the program launched in early April: the allocated funding ran out in less than two weeks and many Community Development Funding Institutions (CDFIs) like Sky-Tucker's felt left out. The more than 1,000 CDFIs across the country provide education, investments, and loans to low-to-moderate income individuals and businesses that usually can't access credit at larger banks, and who are most at risk during an economic downturn. With Congress set to start negotiating another relief package in later in July, CDFIs are looking to the future and seeking new funding mechanisms to support their clients.