Ivanka Trump, daughter and adviser to President Donald Trump, is working together with the Treasury Department and the Small Business Administration (SBA) to allocate $10 billion to help out minority-owned small businesses that have been affected by the pandemic, according to reports.
The SBA announced on Thursday that the $10 billion the organization is setting aside will be for the Paycheck Protection Program and will be lent “exclusively by Community Development Financial Institutions (CDFI),” which provide financial products and services for local residents and businesses.
This is the second round of funding for small businesses.
The Payment Protection Program, a program created by the SBA to help lend out forgivable loans as a way for employees to be kept on payroll in small businesses. It was created by the Coronavirus, Aid, Relief, and Economic Security (CARES) Act. So far, 4.4 million loans totaling $510 billion have been given to small businesses in the United States.
The CDFI, which will lend out the funds, approved more than $7 billion loans with the Payment Protection Program as of May 23. The funds will ensure that entrepreneurs and small business owners in the country will be able to receive the financial support they need to make sure that their employees maintain their jobs and their business remains operational.
“As the administration continues to assist our nation’s small businesses, it is critical that we maintain a vigilant focus on assisting those that need it the most—specifically those in minority, underserved and rural communities,” Ivanka Trump said in a statement on Thursday, adding, “once again delivers on the president’s promise to fight for forgotten Americans everywhere and it is a historic recognition of the unique needs of small businesses and the communities that they serve.”
The unemployment rate for women and minority groups in April was higher than in previous months during the pandemic. The unemployment rate rose to 16.2 percent from 3.4 percent in February for women, 16.7 percent from 5.8 percent in February for black Americans, and 18.9 percent from 4.4 percent in February for Latino or Hispanic Americans, as stated in a report issued by the Department of Labor.
“The PPP has helped over 50 million American workers stay connected to their jobs and over 4 million small businesses get much-needed relief,” said Treasury Secretary Steven T. Mnuchin. “We have received bipartisan support for dedicating these funds for CDFIs to ensure that traditionally underserved communities have every opportunity to emerge from the pandemic stronger than before.”