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Growing Coalition Urges SBA to “Get Serious” and Make the Paycheck Protection Program Work for Businesses of Color, Mom and Pops
NAACP, UnidosUS, Opportunity Finance Network, Alliance of African American CDFI CEOs (AAA), and a dozen new advocates join coalition to call for SBA to set aside $10B in funding for underserved businesses
(WASHINGTON DC) – Yesterday, the President signed a law that appropriates an additional $310 billion to replenish the Paycheck Protection Program (PPP), however it does nothing to ensure access for underserved businesses that were shut out of the first round. Very small businesses, underbanked rural businesses as well as Black and Latino businesses are among the most vulnerable that are unlikely to get access. The hundreds of billions channeled through this emergency financial relief program in the first round flowed primarily through big banks and almost exclusively to their preferred customers, as reported by CNN, “JPMorgan, Ruth’s Chris accused of cheating small businesses out of emergency loans.”
The new law “sets aside” $30 billion in funding for institutions that specialize in providing loans to underserved businesses, including Community Development Financial Institutions(CDFIs) and Minority Depository Institutions (MDIs) was expanded to include banks with assets under $10 billion. With more than 95% of banks having assets under $10 billion and defined in the bill as “small banks”, this set-aside is rendered meaningless.
The organizations listed below are now calling for the Small Business Administration to use its administrative authority to set aside $10 billion in PPP funding for use ONLY by Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) to make this funding available to underserved businesses. CDFIs are financial institutions, including small banks, credit unions and non-depository loan funds, that are certified by the U.S. Treasury Department for their expertise in lending to underserved businesses and consumers. MDIs are banks and credit unions that are majority-owned and controlled by underserved minorities.
Hundreds of millions of dollars were inappropriately lent to publicly traded companies in the first round of PPP. All of these loans should be returned and included in this set-aside for underserved businesses.
Alliance of African American CDFI CEOs (AAA)
American Business Immigration Coalition (ABIC)
Black Chicago Tomorrow
Business Leadership Council
(Read joint letter from Black CEOs and Directors requesting a set-aside to address black businesses left out of PPP, as reported in the New York Times)
California Reinvestment Coalition
Center for Responsible Lending
Chicago Urban League
Colorado Housing Enterprises
Community Resources & Housing Development Corporation
Hispanic Economic Development Corporation
Hispanic Interest Coalition of Alabama (HICA)
Hope Credit Union
Illinois Black Chamber of Commerce
Illinois Hispanic Chamber of Commerce
Mission Economic Development Agency
National Alliance of Community Economic Development Associations (NACEDA)
NALCAB – National Association for Latino Community Asset Builders
National Partnership for New Americans (NPNA)
Neighborhood Housing Services
Opportunity Finance Network
Self-Help Federal Credit Union
The Resurrection Project
About the Alliance of African American CDFI CEOs (AAA)
Alliance of African American CDFI CEOs (AAA) represents 30 CDFIs focused on increasing capital and financial services available to African American owned businesses and citizens in underserved communities nationwide.
About the American Business Immigration Coalition (ABIC)
The American Business Immigration Coalition (ABIC) promotes commonsense immigration reform that advances economic competitiveness, provides American companies with both the high-skilled and low-skilled talent they need, and allows the integration of immigrants into our economy as consumers, workers, entrepreneurs and citizens.
About Hope Credit Union
Hope Credit Union and its affiliated Hope Enterprise Corporation provide financial services; aggregate resources; and engage in advocacy to mitigate the extent to which factors such as race, gender, birthplace and wealth limit one’s ability to prosper. Since 1994, HOPE has generated more than $2.5 billion in financing that has benefitted more than 1.5 million people in Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
Founded in 1909, the NAACP is the nation’s oldest and largest nonpartisan civil rights organization. Its members throughout the United States and the world are the premier advocates for civil rights in their communities. You can read more about the NAACP’s work and our six “Game Changer” issue areas at naacp.org.
NALCAB – the National Association for Latino Community Asset Builders – is the hub of a national network of more than 120 mission-driven organizations in 40 states, DC and Puerto Rico that serve ethnically diverse Latino communities across the US. Members of the NALCAB Network invest in their communities by building affordable housing, addressing gentrification, supporting small business growth, and providing financial counseling on issues such as credit building and home ownership. Our mission is to strengthen the economy by advancing economic mobility in Latino communities. NALCAB’s work advances economic mobility for low and moderate-income people.
About the National Partnership for New Americans (NPNA)
The National Partnership for New Americans (NPNA) is a national, multiethnic, multiracial partnership of 41 immigrants and refugee rights organizations across 37 states, that work to promote citizenship and integration among our diverse immigrant and refugee communities for the benefit of all Americans.
About Opportunity Finance Network (OFN)
Opportunity Finance Network (OFN) is the national association of community development financial institutions (CDFIs). We help money flow to people and places where traditional finance doesn’t reach by maximizing the effectiveness of OFN member and non-member CDFIs through direct financing, learning opportunities, industry events, and advocacy.
About Self-Help Federal Credit Union
Self-Help Federal Credit Union was chartered in 2008 to build a network of branches that serve working families and underserved communities. With 18 branches in California, 10 branches in Illinois, and 1 branch in Wisconsin, over $1.2 billion in assets, and serving more than 82,000 members, Self-Help Federal is one of the fastest-growing low-income designated credit unions in the country. It is part of the national Self-Help family of non-profit organizations whose collective mission is to create and protect ownership and economic opportunity for all. For 40 years, the Center for Community Self-Help and its affiliates have provided $9.1 billion in financing to help over 172,000 low-wealth borrowers buy homes, start and build businesses, and strengthen community resources. For more information, go towww.self-helpfcu.org and www.self-help.org.
About The Resurrection Project
The Resurrection Project is a multifaceted organization that seamlessly blends community development, community organizing, human service delivery, and advocacy to build healthier and engaged communities. TRP provides immigration services and advocacy strategies, creates and preserves affordable housing, provides financial education and counseling, and develops leaders who advocate for improving systems that achieve family stability and create vibrant, healthier and involved communities.
UnidosUS, formerly National Council of La Raza, is the United States’s largest Latino nonprofit advocacy organization. It advocates in favor of progressive public policy changes including immigration reform, a path to citizenship for undocumented immigrants, and reduced deportations.