There is a major glitch in the new round of small business funding for the Paycheck Protection Program – only CDFIs with over $50 million in loans disbursed during the past 12 months are considered eligible lenders (see form below). This criteria will practically exclude every CDFI that serves minority and immigrant entrepreneurs and leave once again the Mom and Pop stores across the country out of a funding life line.
A bipartisan deal heralded the dedicated funds to the “Mom and Pop” stores across the country. That will not happen unless the SBA and Treasury change the eligibility criteria over the weekend.
The SBA should change the criteria to read – eligible community lenders are CDFIs with at least $100,000 in loans disbursed during the last 12 months. Small ethnic based CDFI’s should be allocated at least $5 million in loan dollars each.
This is the only way the money will reach the Mom and Pop stores in the country. They are a hair’s breadth from boarding up their storefronts.
It looks like we are working very hard to make it tough for the Mom and Pop businesses to survive. Yet they are anchor institutions in the neighborhoods that they are located.
Anyone listening ?