Testimony of Dafina Williams, Opportunity Finance Network — Senate Small Business Committee, December 10, 2020

Summary

Written testimony of Dafina Williams, Senior Vice President of Public Policy at Opportunity Finance Network, to the Senate Committee on Small Business and Entrepreneurship, dated December 10, 2020, for the hearing Small Business in Crisis: the 2020 Paycheck Protection Program and its Future. The testimony argues that community development financial institutions were initially sidelined as PPP lenders and cites outside research on unequal access for Black and Latinx business owners. It describes program changes that increased CDFI participation, including a $30 billion set aside under P.L. 116-139 and a $10 billion set-aside for CDFIs. It states that CDFIs provided more than $7.5 billion in PPP loans with an average loan size of about $65,000, gives lending examples from individual CDFIs, and describes continuing challenges with the loan forgiveness process.

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                              Testimony of Dafina Williams
            Senior Vice President, Public Policy, Opportunity Finance Network
        Provided to the Senate Committee on Small Business and Entrepreneurship
                                   December 10, 2020

Thank you for holding this hearing entitled: “Small Business in Crisis: the 2020 Paycheck Protection
Program and its Future.” My name is Dafina Williams, Senior Vice President of Public Policy at
Opportunity Finance Network (OFN). I am pleased to be here today to testify about community
development financial institutions (CDFIs) role as essential partners in helping the Paycheck
Protection Program (PPP) and other federal relief reach underserved businesses.

OFN is a national network of CDFIs mission-driven community development banks, credit unions,
loan funds, and venture capital funds investing in opportunities that benefit low-wealth
communities across America. As specialized lenders that focus on underbanked communities,
CDFIs are uniquely poised to deliver federal relief resources to businesses owned by people of
color, very small businesses, and other under-resourced businesses in urban, rural, and Native
communities.

For nearly 40 years, CDFIs have provided responsible, affordable capital where it is needed most:
CDFI customers are 85 percent low-income, 58 percent people of color, 48 percent women and 26
percent rural.1 Nationwide, the more than 1,100 CDFIs certified by the US Treasury Department’s
CDFI Fund manage more than $222 billion. CDFIs are also experienced small business lenders with
deep expertise reaching low wealth markets. In fiscal year (FY) 2019, certified CDFIs had more
than $24 billion of small business and microloans in their portfolios. 2 With cumulative net charge-
off rates of less than 1 percent, CDFIs lend prudently and productively in markets underestimated
by mainstream banks.3

CDFIs as Financial First Responders

From the first days of the COVID-19 pandemic, CDFIs understood the threat facing their borrowers.
As soon as the mandatory business closures and social distancing began, CDFIs reached out to
their customers offering whatever accommodations they could to ease the economic disruption:
principal and interest payment deferrals, emergency loans, loan modifications, and other
emergency responses or new products to help borrowers weather the crisis.

The CDFI industry has been able to quickly respond because of deep experience leaning in during
times of crisis. From natural disasters, such as hurricanes Katrina, Sandy, Maria, and Harvey, to
the 2008 financial crisis and the aftermath of 9/11, CDFIs have a strong record of stepping in as
the financial first responders to support families and communities in their survival and recovery
efforts. CDFIs are able to weather times of economic uncertainty through a combination of strong
balance sheet management, deep ties with their local communities, and public and private sector
partnerships.

Paycheck Protection Program’s Limited Reach in Underserved Markets

Earlier this year, CDFIs were eager to become lenders under the federal government’s flagship
small business relief program, the PPP. Despite a proven track record of reaching the very
communities that Congress prioritized though the Coronavirus Aid, Relief, and Economic Security

1 Opportunity Finance Network, “Impact Performance”, https://ofn.org/impactperformance
2 Opportunity Finance Network, 2019 CDFI Fund Annual Certification Reporting Database”, Accessed

November 19, 2020.
3
  Opportunity Finance Network, “Impact Performance”, https://ofn.org/impact-performance
(CARES) Act — low-wealth communities, women, veterans and business owners of color — most
CDFIs were initially sidelined as PPP lenders.

As PPP unfolded, it was apparent that for small businesses, lenders matter. The program’s initial
reliance on existing banking relationships with mainstream financial institutions disadvantaged very
small, women- and minority-led businesses who often do not have relationships with a traditional
lender. For example, research from the Federal Reserve found that less than one quarter of Black-
owned employer firms had a recent borrowing relationship with a bank. For Black-owned non-
employer firms, only 1 in 10 had a recent borrowing relationship.4

This structural disadvantage impacted borrowers: research from the National Community
Reinvestment Coalition (NCRC) found that banks asked more questions and requested more
information up front from Black or Latinx business owners compared to white business owners
when seeking PPP financing — even when the Black or Latinx business owners had stronger
applications.5 In addition, a report by Color of Change and UnidosUS found that 51 percent of Black
and Latinx small business owners surveyed had applied for PPP loans of less than $20,000. Only 12
percent said they received the full amount of assistance requested. More than three times that
number — 41 percent — were denied assistance.6

The Brookings Institute analysis of access to PPP loans in majority-minority neighborhoods found
that on average, it took 31 days for small businesses with paid employees in majority-Black ZIP
codes to receive PPP loans—seven days longer than those in majority-white communities. For non-
employer businesses, the loan delay between majority-Black and majority-white neighborhoods
grew to nearly three weeks.7 Part of the lag was that independent contractors and sole proprietors
were not eligible to apply for PPP loans until April 10, just days before the first round of program
funds were depleted.8 This delay was potentially catastrophic for minority owned small businesses,
which tend to have less than two weeks of cash on hand,9 and especially for the more than 95
percent of black owned businesses that are sole proprietorships.



4
 Claire Kramer Mills and Jessica Battisto, “Double Jeopardy: Covid-19’s Concentrated Health and Wealth
Effects in Black Communities”, New York Federal Reserve Bank. Published August 2020. Accessed December
7, 2020.
https://www.newyorkfed.org/medialibrary/media/smallbusiness/DoubleJeopardy_COVID19andBlackOwnedBus
inesses
5National Community Reinvestment Coalition, “Lending Discrimination Within the Paycheck Protection

Program”, Published July 15, 2020. Accessed December 6, 2020. https://ncrc.org/lending-discrimination-
within-the-paycheck-protection-program/
6 Color of Change and Unidos US, “First COVID-19 Survey of Black and Latino Small-Business Owners Reveals

Dire Economic Future”, Published May 18, 2020. Accessed December 6, 2020.
https://theblackresponse.org/wp-content/uploads/2020/05/COC-UnidosUS-Abbreviated-Deck-F05.13.20.pdf
7 Sifan Liu and Joseph Parilla, “New data shows small businesses in communities of color had unequal access

to federal COVID-19 relief”, The Brookings Institution, Brookings Metro COVID-19 Analysis Series, Published
September 17, 2020. Accessed December 6, 2020. https://www.brookings.edu/research/new-data-shows-
small-businesses-in-communities-of-color-had-unequal-access-to-federal-covid-19-relief/
8 Elaine Pofeldt, “COVID-19 Aid to Small Business Owners Trickles Out as SBA Clarifies CARES Act Rules for

Sole Proprietors”, Forbes. Published April 15, 2020. Accessed December 6, 2020.
https://www.forbes.com/sites/elainepofeldt/2020/04/15/covid-19-aid-to-small-business-owners-trickles-out-
as-sba-clarifies-cares-act-rules-for-sole-proprietors/?sh=4d6a61417495
9 Lauren Leatherby, “Coronavirus Is Hitting Black Business Owners Hardest”, New York Times, Published June

18, 2020. Accessed December 7, 2020. https://www.nytimes.com/interactive/2020/06/18/us/coronavirus-
black-owned-small-business.html



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Despite the CDFI industry’s expertise in lending to minority-owned, very small, and other
disadvantaged businesses, CDFIs were underestimated and underutilized in the early days of PPP.
The impact of excluding CDFIs was clear: PPP relief funds could not reach small business borrowers
without reaching their lenders. The intention of PPP was to help small businesses survive during the
pandemic, but the initial execution left out millions of businesses. Very small businesses and
nonprofit organizations had difficulty in the early weeks of the program finding a lender to process
their PPP applications because they did not have a preexisting relationship with banks. CDFIs were
able to bring more businesses into the fold but for some it was too little, too late.

Program Adjustments Increase CDFI Participation

After a rocky start, Congress, the Small Business Administration (SBA) and the Department of
Treasury made changes to the program that increased CDFI participation. These changes include a
set aside of PPP lending authority for CDFIs, access to SBA systems for small lenders, lowering
barriers to entry for non-depository lenders, and access to the Federal Reserve’s PPP lending
facility. These program adjustments allowed CDFIs to take a larger role in PPP lending:

   o     PPP set-asides for CDFIs - In the PPP and Health Care Enhancement Act (P.L. 116-139),
         Congress directed SBA to create a $30 billion set aside for PPP loans made by “community
         financial institutions”, which included CDFIs.10 In late May, the SBA announced a dedicated
         $10 billion set-aside specifically for CDFIs. These set asides were critical to CDFIs and their
         customers.

         The “first-come, first-served” model disadvantaged business owners who needed additional
         time to prepare their PPP loan applications. Many of these borrowers turned to a CDFI once
         more CDFIs became eligible PPP lenders. The set-asides enabled lenders to appropriately
         assist their clients, who often do not have ready access to accountants or tax professionals
         and require technical assistance to prepare PPP applications.

   o     Dedicated access to E-Tran for small lenders - In late April, the SBA provided a brief window
         of limited access to the SBA’s e-tran system to lenders with less than $1 billion in assets.
         This was another important opportunity for CDFIs to process their loans and have access to
         the SBA systems without directly competing with thousands of other PPP lenders, including
         those with longstanding SBA relationships.

   o     Lower barriers to entry for nondepository lenders - On April 30, Treasury dropped the
         lending volume threshold from $50 million to $10 million, opening access to more CDFI
         lenders. However, that action was taken more than a month after the program opened.
         Easing that requirement earlier in the process would have allowed more CDFIs to become
         PPP lenders and serve additional customers, especially in the early days of the program
         when demand was extremely high.

   o     Access to the Federal Reserve’s PPP facility for nondepository lenders - On April 30, the
         Federal Reserve also opened access to its PPP facility to non-depository CDFIs, helping
         CDFIs access liquidity to support their PPP lending. Some CDFIs were able to access the
         facility by developing correspondent relationships with depository institutions that have
         master accounts with the Federal Reserve. However, the process was delayed and complex,
         limiting access to liquidity at a critical time when CDFIs needed it most. CDFIs would also


10 Public Law 116–139, Paycheck Protection Program And Health Care Enhancement Act, April 24, 2020,

https://www.congress.gov/116/plaws/publ139/PLAW-116publ139.pdf


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         have benefited from the CARES Act provision authorizing SBA to purchase PPP loans directly
         from lenders but was never implemented.

CDFIs Outperformed Peers as PPP Lenders

The regulatory changes and set-asides in place for the second round of PPP funding allowed CDFIs
to ramp up their PPP lending. CDFIs showed remarkable success as PPP lenders, outperforming
much larger and better capitalized lenders to provide more than $7.5 billion in PPP loans in just a
few short months.11

SBA data shows that on average, loans made by CDFIs were significantly smaller than those made
by other lenders. Based on the SBA’s data, the average PPP loan size for CDFIs was about
$65,000, approximately 35 percent smaller than the average loan size for all PPP lenders. In the
second round of funding, average loan size for CDFIs was even lower at $43,000. Some CDFI PPP
lenders report making loans of less than $1,000. CDFI PPP lenders served not only their existing
customers, but also the small businesses and nonprofit customers that lacked the banking
relationships often needed to access PPP.

The following are examples of CDFI PPP lending:

   •     Washington, DC-based Latino Economic Development Center participated in the second
         round of PPP and deployed 109 loans totaling $2.2 million to businesses in DC, Maryland,
         Virginia, and Puerto Rico. Their clients' average PPP loan size was just slightly over $20,000.

   •     Orlando, Florida-based BBIF made a total of 200 PPP loans totaling more than $7.2 million
         that retained 1,333 jobs. The average loan size was $36,194. BBIF approved PPP loans
         throughout the state of Florida to diverse small business owners: 86 percent of their total
         PPP loan recipients are ethnic minorities and 67 percent are black business owners. Ninety
         percent of their PPP were made to new customers that had not worked with BBIF before.

   •     Missoula, Montana-based MoFi made 1,270 PPP loans totaling $33.1 million with an average
         loan size of $26,000. Loans were made in five states: $13.8 million in Idaho (42 percent),
         $8.9 million in Montana (27 percent), $3.4 million in Oregon (10 percent), $4.3 million in
         Washington state (13 percent) and $2.6 million in Wyoming (8 percent). Forty-two percent
         of PPP loans were made in Idaho totaling $13.8 million. MoFi made more loans to
         businesses this year than in the past 15 years combined. The vast majority of MoFi’s
         borrowers were struggling to access PPP loans at a bank or credit union. Banks referred
         businesses they could not serve: one local bank in Idaho referred nearly 150 borrowers to
         MoFi, while a regional bank in Montana referred nearly 50 borrowers.

   •     St. Louis, Missouri-based Justine Petersen, closed 436 PPP loans, totaling $14.8 million, with
         74 percent of loans made to small businesses of color, 62 percent of loans to female headed
         small businesses, and 71 percent to businesses in low- and moderate-income communities.
         The CDFI also created an online portal to expedite the forgiveness stage of the
         program. The portal allows documents to be uploaded, easing the labor investment required
         to process the forgiveness applications.

   •     San Jose, California-based Opportunity Fund and four of their partners offered PPP loans to
         new and existing customers. A total of 1,160 small businesses were approved for PPP loans

11 Small Business Administration, “Paycheck Protection Program (PPP) Report Approvals through 08/08/2020”.

Published August 10, 2020. Accessed November 18, 2020. https://www.sba.gov/sites/default/files/2020-
08/PPP_Report%20-%202020-08-10-508.pdf


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         totaling $17.96 million with $14 million of those loans funded directly by Opportunity Fund.
         Opportunity Fund received more than 2,100 PPP applications requesting $46 million in
         funding before the program expired in August.

   •     Durham, North Carolina-based Self-Help Credit Union made 1,758 PPP loans totaling $183
         million with a median loan size of $21,000. Fifty-nine percent of loans were made to
         businesses or nonprofits led by people of color. These PPP loans saved 19,895 jobs.

   •     Jackson, Mississippi-based Hope Credit Union made 2,587 PPP loans totaling $81 million to
         small businesses across the Southeast that saved more than 10,000 jobs. The average loan
         size was less than $30,000 and the median loan size was around $11,000. The majority of
         loans were made to businesses owned or led by people of color or women, with nearly 40
         percent of their PPP loan dollars reaching persistent poverty communities. Prior to PPP,
         Hope originated about 50 business loans in a year. At their PPP lending peak, nearly half of
         Hope’s staff was dedicated to PPP lending, with many providing small borrowers with much
         needed technical assistance.

   •     Chicago, Illinois-based IFF partnered with another CDFI, Minneapolis-based Community
         Reinvestment Fund to deploy PPP loans. The organizations committed $50 million of their
         own liquidity to ensuring PPP loans were made to smaller nonprofits, nonprofits serving
         lower-income communities, and nonprofits led by or serving people of color throughout the
         Midwest.

Challenges Remain for PPP Lenders and Borrowers

The PPP has been a valuable lifeline to the businesses able to secure access, but challenges
continue for both lenders and borrowers:

   •     Loan forgiveness process - As the first wave of PPP loans became eligible for forgiveness
         earlier this fall, the SBA’s forgiveness platform was not ready to begin accepting
         applications. For weeks, tens of thousands of applications languished in the system with
         little information available to lenders or borrowers about their status. Once the platform
         opened and applications were accepted, there were delays in processing applications and
         remitting payments to lenders. In recent weeks, SBA has made improvements to their
         systems and processes, and forgiveness applications are being processed.

         As the volume of forgiveness applications ramps up, a backlog at SBA could cause
         substantial delays in the processing of those applications. The SBA’s implementation of
         3508S, the streamlined forgiveness form for loans of $50,000 or less, is an important step
         in the right direction to simplifying the forgiveness process. Streamlined forgiveness for
         smaller loans of less than $150,000 that rely on documentation already submitted during
         the application process would further ease cost burdens for lenders and borrowers.

   •     Fee structure encourages larger loans – One of the reasons borrowers seeking the smallest
         loans received less consideration from lenders is because the fee structure created
         incentives to make larger loans. Even though fees were designed to decrease as loan size
         increased, there was still an incentive to make larger loans to maximize fee income. For
         example, a $50,000 PPP loan would generate a five percent fee of $2,500, while a $350,000
         PPP loan would generate a five percent fee of $17,500, and a $1 million PPP loan would
         generate a three percent fee of $30,000. Adjustments to the fee structure could spur more
         small dollar PPP lending.




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   •     Unanticipated costs for lenders - A record amount of PPP loan production from all lenders,
         including CDFIs, means increases in staff time and costs, technological upgrades, and
         additional documentation and recordkeeping. The delayed forgiveness process also means
         that lenders are incurring costs of servicing PPP loans for longer than anticipated as well as
         costs related to providing borrowers with support needed to navigate the complex
         forgiveness process.

   •     Unanticipated costs for borrowers – CDFIs in OFN’s network report that borrowers are facing
         potential unanticipated PPP costs:

            o   Deductibility of business expenses - While there is clear guidance that forgivable PPP
                loans are not taxable, the recent IRS ruling that business expenses paid for with PPP
                loans are not tax deductible has left some business owners concerned they could be
                facing a hefty tax bill next spring.

            o   Deduction of Economic Injury Disaster Loan (EIDL) advances - The requirement that
                EIDL grant proceeds must be deducted from the forgivable amount of PPP loan has
                left some borrowers who anticipated a fully forgiven loan with unanticipated debt
                when they can ill afford it.

   •     Delayed Guidance - Since the program’s inception, the rules put forth by SBA and Treasury
         changed constantly, creating confusion for borrowers and lenders alike. Such inconsistent
         guidance, especially around issues of loan forgiveness and tax issues, has created hesitation
         and impacted demand for PPP loans from small business owners.

Significant Additional Federal Investment Needed to Support Small Business

The PPP was an important first step in addressing some of the challenges facing small businesses,
but more must be done. The federal relief small businesses received from PPP and the CARES Act
Section 1112 debt relief payments has expired. New relief funds are needed quickly to prevent
widespread business closures that will have lasting negative economic impacts. The risks are
especially acute for businesses owned by people of color – 41 percent of Black businesses and 32
percent of Latinx businesses have permanently shuttered this year.12

Relief efforts should be targeted to reach the most vulnerable businesses to ensure a more
inclusive economic recovery. Federal programs that do not reach businesses owned by women,
people of color, rural businesses, and other underbanked business must be refocused.

The following are recommendations that will help ensure new federal resources reach the intended
communities by enhancing the capacity of CDFIs to support the economic recovery. Many of these
recommendations have been addressed through Senator Cardin’s HEROES 2.0 Small Business
Lifeline Act (S.4818):

   •     Emergency Appropriations for the CDFI Fund - OFN is especially pleased to see
         HEROES Small Business Lifeline Act invest in the mission- and community-based lenders
         that have a demonstrated history of getting capital to minorities, women, and other
         underserved communities. In particular, the $1 billion in emergency grant funding for the
         CDFI Fund is critical to ensuring CDFIs are an integral part of any federal relief and recovery

12 Robert Fairlie, “The Impact of Covid-19 on Small Business Owners: Evidence of Early Stage Losses from the

April 2020 Current Population Survey”, Stanford Institute for Economic Policy Research, Published May 23,
2020. Accessed December 6, 2020. https://siepr.stanford.edu/sites/default/files/publications/20-022.pdf


Page 6
         effort. The federal government must increase the supply of capital to mission lenders like
         CDFIs, who are adept at channeling those resources into distressed communities. More
         investments at this scale are needed to enable CDFIs to step up and meet the economic
         challenges facing our communities.

         This investment will also broaden the reach and impact of the federal government’s
         investments. While the PPP set-asides were critical in helping capital flow to small business
         owners impacted by the pandemic, only a small subset of CDFIs were able to become PPP
         lenders, and they used their own lending capital to make PPP loans to small business
         customers. SBA pays a small servicing fee to PPP lenders for each loan they make, but the
         funds for the loan itself comes from the PPP lender. 13 PPP loans are a short-term, focused
         solution to meet an immediate small business need, not a substitute for critical equity
         capital CDFIs need to support the medium- and long-term economic recovery. CDFIs are
         well positioned to respond to the financial needs of low wealth markets but need their own
         balance sheets to be stable in order to contribute to the economic recovery. This balance
         sheet stability is essential to allow CDFIs to continue to leverage private and philanthropic
         resources.

•   Restructure and reform PPP – OFN urges Congress to restructure and reform the PPP with a
    focus on reaching the most underserved small businesses. With programmatic fixes to make
    the program work better for businesses and lenders, new PPP funding could provide a critical
    bridge to businesses struggling to survive. Although there were funds left over when the
    program ended, the economic outlook has shifted since August. Businesses that were able
    survive a few months ago and might have forgone applying for a PPP loan are now facing a very
    different financial reality.

    OFN supports the following provisions in HEROES 2.0 (S.4818):
       • extend PPP through March 2021 to create set-asides for first-time PPP loans to
           businesses with 10 or fewer employees, sole proprietors and the self-employed,
           nonprofits, and for loans less than $250,000 to businesses located in low- to moderate-
           income (LMI) areas.
       • second draw PPP loans for hard-hit businesses
       • $15 billion PPP set-aside for CDFIs, Minority Depository Institutions (MDIs), and other
           mission lenders.

    OFN also supports the provisions that:
       • expand eligibility to all nonprofits, regardless of size and type
       • simplifies the forgiveness process
       • repeals the requirement of deducting an EIDL advance from the PPP forgiveness amount
       • removes limitations that restrict small businesses owned by formerly incarcerated
           individuals from securing a PPP loan.

    Finally, OFN urges Congress to change the PPP fee structure to a flat fee to ensure that lenders,
    who are now fully realizing the costs associated with participating in the PPP program, can
    continue to make smaller loans and provide the technical assistance needed to navigate the
    application and forgiveness process.



13 Small Business Administration, “Paycheck Protection Program Interim Final Rule”, Issued April 2, 2020.

https://www.sba.gov/document/policy-guidance--ppp-interim-final-rule


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•   Extend and expand the Section 1112 CARES Act debt relief program - The SBA’s debt
    relief program was a critical lifeline for many CDFIs and their borrowers. The six months of
    payments eased borrower’s debt burden while the SBA’s payments of interest and fees to
    lenders helped relieve stress on balance sheets from lost revenue. For some CDFIs, this
    additional capacity enabled them to offer their own emergency loan products or administer
    state and local aid programs. OFN strongly supports the provisions in HEROES 2.0(S.4818) that
    extends payments of principal, interest, and fees on all pre-existing and new SBA 7(a), 504 and
    microloans for up to a year, with more relief targeted to existing borrowers in underserved
    markets and the hardest-hit sectors, and expanding the relief to SBA’s physical and EIDL
    disaster loans.

•   Direct SBA resources to small businesses located in low-wealth markets or owned by
    historically underestimated groups - Congress should make improvements to the SBA’s
    core programs, including 7(a), Community Advantage, 504, and the Microloan program. To
    survive the pandemic, businesses will need access to responsible, affordable loans, credit
    enhancements, and working capital in addition to PPP’s payroll support. Programs that prioritize
    CDFI participation like the 7(a) Community Advantage program and the SBA Microloan program
    are more successful at reaching underserved businesses, especially businesses owned by
    women and people of color. Enhancing CDFI participation and making improvements to these
    programs will help reach more underbanked businesses.

    OFN supports the provisions of HEROES 2.0 related to the SBA Microloan and Community
    Advantage programs that would:
          • temporarily increase the amount of time that borrowers can repay their loans from 6
             to 8 years.
          • temporarily increase the outstanding aggregate amount each intermediary may
             borrow from $6 million to $10 million.
          • temporarily waiving the matching requirements for the technical assistance grants
             and the 50 percent limitation on pre-loan technical assistance.
          • increase to 90 percent the loan guarantee amount on 7(a) loans, including for
             Community Advantage loans, until October 1, 2021.

CDFIs are Essential to an Inclusive Economic Recovery

CDFIs are critical intermediaries that build financial infrastructure to deliver capital to businesses
and communities that need it most. But the work of CDFIs is not done alone: partners like the
federal government remain vital to continuing the powerful work of mission driven lenders.
Investments in proven solutions and programs that support the work of CDFIs will stimulate are
also a smart investment for the federal government: small amounts of public subsidy are leveraged
to amplify its impact.

The nation’s small businesses cannot afford for CDFIs to be an afterthought in public policies
addressing the economic crisis brought on by COVID-19. The PPP experience demonstrated that
when CDFIs are empowered with supportive policies coupled with capital at the beginning of any
relief program effort or in a sustain capacity, they outperform other lenders. With targeted
resources from the public sector and partnership with CDFIs, our country’s small business sector
can weather the pandemic and recover to thrive. Focusing on reaching unbanked and underbanked
businesses through the mission lenders that are best equipped to serve them will ensure a more
equitable recovery.

Thank you for the opportunity to speak with you today. I look forward to your questions.



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