House Holds Hearing Examining Impact of Covid-19 on CDFIs and Minority Depository Institutions

Earlier this month, the House Financial Services Subcommittee on Consumer Protection and Financial Institutions held their first virtual hearing to discuss the impact of Covid-19 on Community Development Financial Institutions (CDFIs) and Minority Depository Institutions. The witnesses testified that Congress should modify the PPP to better serve minority-owned small businesses and promote inclusive lending. Speakers also recommended a simpler forgiveness application, suggesting that the current 11-page application is too complex for business owners trying to survive the pandemic. A streamlined forgiveness process for small dollar loans would allow vulnerable communities to get the relief they need. Additionally, the witnesses called for increased appropriations to the CDFI Fund to upgrade their technological capacity and promote financial equity following COVID-19. Included in the House-passed HEROES Act was $1 billion for the CDFI Fund to help prevent, prepare for and respond to the coronavirus. The Senate has not yet put forth proposed language for the next Covid-19 relief package. Click here to watch a recording of the hearing.   

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