May 28 (UPI) -- The U.S. Small Business Administration said Thursday that $10 billion for a second round of small business rescue loans will be designated for Community Development Financial Institutions.
The SBA made the announcement after consulting with the U.S. Treasury Department, a statement shows.
The second round of funding is for the Paycheck Protection Program, designed to help small businesses keep workers on payroll amid the COVID-19 pandemic.
CFDFIs are private financial institutions that focus on affordable lending to help low-income communities.
"The forgivable loan program, PPP, is dedicated to providing emergency capital to sustain our nation's small businesses, the drivers of our economy, and retain their employees," SBA Administrator Jovita Carranza said in a statement. "CDFIs provide critically important capital and technical assistance to small businesses from rural, minority and other underserved communities, especially during this economically challenging time."
CDFI's have already approved more than $3.2 billion in Round Two of PPP loans as of May 23.
The dedicated funding ensures that they will receive another $6.8 billion in the second round.
"Since Round Two of PPP loan processing began on April 27, 2.2 million loans have been made to small businesses which surpasses the number of all loans made in PPP Round 1," the SBA announced earlier this month. "The total value of these 2.2 million loans is over $175 billion."
The SBA began processing loans for Round One on April 3 based on the creation of PPP through the more than $2 trillion Coronavirus, Aid, Relief and Economic Security Act passed in March.
In total, to date, more than 4.4 million PPP loans have been approved, worth over $510 billion.