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.


Carsey School of Public Policy

Publication Date

Spring 4-7-2020


Carsey Perspectives


Durham, N.H. : Carsey School of Public Policy, University of New Hampshire

Document Type



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.



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