cloudy.png
Friday September 30th, 2022 9:06AM

US has sent $8.28 billion in pandemic funds to local lenders

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — On the same day the Federal Reserve gave a sobering report on the U.S. economy's trajectory, administration officials highlighted how they have kept some of the nation's smallest businesses afloat through the pandemic.

Roughly $8.28 billion in relief funds have been dispersed to 162 community financial institutions across the country, through Treasury’s Emergency Capitol Investment Program, officials said Wednesday.

Those financial institutions in turn offer loans to micro and small businesses.

The funding regime, abbreviated ECIP, is one of several pandemic relief programs meant to support community financial institutions — which provide loans, grants, and other assistance to small and minority-owned businesses that have difficulty getting funding from traditional banks.

“There is almost $9 billion on the ground right now" for community banks and lenders, Vice President Kamala Harris said on a call with reporters.

Roughly 96 percent of Black-owned businesses are sole proprietorships and single employee companies. They have the hardest time finding funding and are often the first type of businesses impacted during economic downturns.

On the call with reporters, Harris and Treasury Secretary Janet Yellen highlighted some of the program recipients, including Native American Bank, which recently got a $10 million loan to finance an opioid addiction treatment facility in North Dakota, and a Georgia bank that recently gave a $650,000 working capital loan to an Atlanta-based, Black-owned affordable housing developer.

Mississippi, Louisiana, North Carolina, California, and Texas have received some of the biggest contributions.

“We've long known that too many Americans face significant barriers to participation in our financial system,” Yellen said. “I'm pleased that we've reached a milestone in our work to increase capital to these underserved communities."

There were a record 5.4 million applications for new businesses filed in 2021, according to the U.S. Census Bureau, surpassing the previous peak in 2020 of 4.4 million.

Of that number, a growing share are sole proprietors and businesses without other employees.

“Frankly, a lot of businesses are just recovering from Covid,” Sen. Mark Warner, D-Va., said on the call. He said that community banks “really do incredible work in reaching small businesses."

___

Associated Press reporter Mae Anderson contributed to this report.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Business, AP Online - Georgia News, AP Business - Industries, AP Business - Financial Services, AP Business - Small Business
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US has sent $8.28 billion in pandemic funds to local lenders
On the same day the Federal Reserve gave a sobering report on the U.S. economy’s trajectory, administration officials highlighted how they have kept some of the nation’s smallest businesses afloat through the pandemic
5:23PM ( 8 minutes ago )
GOP hits Kansas governor hard on trans athletes, her new ad
Kansas’ Democratic governor declares in a new television ad that she agrees men don’t belong in women’s sports
5:22PM ( 9 minutes ago )
Zelenskyy addresses UN meeting — on video from Ukraine
Ukrainian President Volodymyr Zelenskyy has begun a much-anticipated video speech to world leaders at the U.N. General Assembly
5:19PM ( 12 minutes ago )
Associated Press (AP)
Senate ratifies international climate deal on refrigerants
The Senate has taken major action to address climate change by ratifying an international agreement that compels the United States and other countries to limit use of hydrofluorocarbons
4:47PM ( 45 minutes ago )
Bank CEOs warn of 'daunting' challenges from inflation
The CEOs of the nation’s biggest banks appeared in front of Congress Wednesday and gave a dim view of the U.S. economy, reflecting the financial and economic distress many Americans are facing
4:42PM ( 50 minutes ago )
Biden: Russia's Ukraine abuses 'make your blood run cold'
President Joe Biden has declared that Russia has “shamelessly violated the core tenets” of the United Nations charter with its “brutal, needless war” in Ukraine
4:38PM ( 54 minutes ago )
AP Online Headlines - Washington
NASA fuels moon rocket in test, hit again with pesky leaks
NASA's new moon rocket has sprouted more fuel leaks in a test ahead of a possible launch attempt next week
4:53PM ( 38 minutes ago )
Russian separatists release 10, including 2 US veterans
Relatives say two U.S. military veterans who were captured while fighting alongside Ukrainian forces are among 10 people released by Russian-backed separatists in a prisoner exchange
4:47PM ( 45 minutes ago )
Putin orders partial military call-up, sparking protests
Russian President Vladimir Putin has ordered a partial mobilization of reservists in Russia
4:40PM ( 52 minutes ago )
AP Business
How steep Fed rate hikes affect your finances
Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier
2:08PM ( 3 hours ago )
Fed escalates its inflation fight with another big rate hike
Intensifying its fight against chronically high inflation, the Federal Reserve raised its key interest rate by a substantial three-quarters of a point for a third straight time, an aggressive pace that is heightening the risk of an eventual recession
2:01PM ( 3 hours ago )
US gas prices tick up, ending 99-day streak of lower costs
After 99 consecutive days of declining gasoline prices, the cost for a gallon has edged a penny higher
1:26PM ( 4 hours ago )
AP Business - Industries
Wall Street futures modestly higher ahead of Fed rate call
Futures on Wall Street were modestly higher Wednesday ahead of a widely expected interest rate hike by the Federal Reserve as the central bank tries to tamp down the worst inflation in 40 years
8:43AM ( 8 hours ago )
Iran targeted by apparent cyberattack amid protests
The website of Iran’s Central Bank was briefly taken down as the Anonymous hacking group claimed to have targeted websites of several state agencies
8:34AM ( 8 hours ago )
EXPLAINER: How steep Fed rate hikes affect your finances
Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier
6:35AM ( 10 hours ago )
AP Business - Financial Services
As small businesses raise prices, some customers push back
Inflation isn’t only costing small businesses money
12:06PM ( 1 week ago )
Small businesses feel the pinch from slowing housing market
The chill in the housing market is rippling out to the carpenters, landscapers and other small businesses that lose out when fewer homeowners renovate their properties
9:52AM ( 3 weeks ago )
Small businesses fell the pinch from slowing housing market
The chill in the housing market is rippling out to the carpenters, landscapers and other small businesses that lose out when fewer homeowners renovate their properties
9:50AM ( 3 weeks ago )
AP Business - Small Business
GOP hits Kansas governor hard on trans athletes, her new ad
Kansas’ Democratic governor declares in a new television ad that she agrees men don’t belong in women’s sports
5:22PM ( 9 minutes ago )
Gates Foundation prods UN, honors inspiration as Goalkeepers
Bill Gates and Melinda French Gates combined characteristic optimism with sobering questions about persistent gender inequality and hunger at an event the Gateses’ foundation convened on the sidelines of the U.N. General Assembly
5:16PM ( 15 minutes ago )
Suspended Sarver says he's decided to sell Suns, Mercury
Robert Sarver says he has started the process of selling the Phoenix Suns and Phoenix Mercury, a move that comes only eight days after he was suspended by the NBA over workplace misconduct including racist speech and hostile behavior toward employees
5:14PM ( 17 minutes ago )
ACC off to strong start in nonconference games
The Atlantic Coast Conference isn't ready to concede college football supremacy to the Big Ten and Southeastern Conference
5:09PM ( 22 minutes ago )
NASA fuels moon rocket in test, hit again with pesky leaks
NASA's new moon rocket has sprouted more fuel leaks in a test ahead of a possible launch attempt next week
4:53PM ( 38 minutes ago )