Abstract
As currently being implemented by the Small Business Administration (SBA), the loans made available through the $349 billion Paycheck Protection Program (PPP), part of the CARES Act recently enacted to address the COVID-19 crisis, are likely to significantly bypass smaller small businesses and those that are minority- or women-owned. In this brief, authors Eric Hangen and Michael Swack discuss a simple policy solution to increase the effectiveness of the SBA PPP. Allowing certified Community Development Financial Institutions (CDFIs) to disburse SBA PPP loans would enable CDFIs to serve community-oriented small businesses, helping them to continue to employ thousands of people—something that they will not be able to do without assistance. Without this bridge to a post-COVID-19 existence many of these businesses will fail, removing important pillars on which their communities depend.
Department
Carsey School of Public Policy
Publication Date
Spring 4-7-2020
Series
Carsey Perspectives
Publisher
Durham, N.H. : Carsey School of Public Policy, University of New Hampshire
Document Type
Article
Recommended Citation
Hangen, Eric and Swack, Michael E., "CDFIs Can Make the SBA PPP Loan Program Work for Smaller, Minority-Owned, and Women-Owned, Small Businesses" (2020). The Carsey School of Public Policy at the Scholars' Repository. 397.
https://scholars.unh.edu/carsey/397
Rights
Copyright 2020. Carsey School of Public Policy. These materials may be used for the purposes of research, teaching, and private study. For all other uses, contact the copyright holder.
DOI
https://dx.doi.org/10.34051/p/2020.386