CDBA Letter to SBA and Treasury on PPP Eligibility for CDFIs - May 14, 2020
CDBA CEO Jeannine Jacokes wrote to the Secretary Mnuchin of the U.S. Department of the Treasury and Administrator Carranza of the Small Business Administration (SBA) urging the SBA to immediately promulgate revised Interim Final Rules and/or FAQs clearly affirming the eligibility of CDFIs to apply for PPP loans, given their qualification as small businesses or nonprofits under the CARES Act. Under the CARES Act, the great majority of CDFI banks qualify as small businesses. Likewise, their nonprofit counterparts are explicitly eligible as nonprofit 501(c)(3) organizations. Yet, the agency has imposed a rule that arbitrarily excludes some organizations as borrowers based on the type of businesses in which they engage.