Marshall Applauds New Financing Opportunities for Small Business Owners
Press Release
Businesses operating in rural and low-income communities will now have two additional opportunities to access federally-guaranteed financing to respond to the impacts of COVID-19.
This week the USDA announced it would provide $1 billion in loan guarantees through the Business & Industry (B&I) CARES Act Program for coronavirus response. Loans will be used to support rural businesses that were impacted by COVID-19. Additionally, the SBA and U.S. Department of Treasury announced it would be setting aside $10 billion of round two Paycheck Protection Program funding to be used by Community Development Financial Institutions (CDFIs) to expand access to financial products and services in low-income communities.
"During this time of recovery and reopening it is vital we continue to provide financing and support to existing businesses, no matter their locations," said U.S. Congressman Roger Marshall, M.D. "Too often business owners in our rural and low-income communities lack the capital needed to survive during economic downturns. I applaud President Trump and the Administration's leadership in finding new ways to support our local employers. Small businesses are the backbone of every community so it is important we continue to help business owners with capital access during these challenging economic times."
USDA B&I Loans
Funding from the USDA's B&I CARES Act Program must be used as working capital to prevent, prepare for or respond to the effects of the coronavirus pandemic. The loans may be used only to support rural businesses, including agricultural producers, that were in operation on Feb. 15, 2020. State and federally chartered lending institutions will have an opportunity to enroll in the program to provide additional financing opportunities to their customers. In 2018, the USDA B&I Loan program issued $1.2 billion in financing to rural businesses across the U.S.
Dept of Treasury CDFI
CDFIs will work to expand economic opportunities in low-income communities by providing access to financial products and services for local residents and businesses. To date, CDFIs have issued nearly 300 loans to Kansas businesses for a total of $74.5 million in financing.
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