Black Businesses & Access to Capital: Data also suggest Black businesses were less likely to receive forgivable loans in the first round of the Paycheck Protection Program (“PPP”), and the HEROES Act attempts to address some of these issues by directing additional resources to community development financial institutions (CDFIs) and minority depository institutions (MDIs).
While the bill does not include any new funding for PPP, it directs the Small Business Association to set aside the lesser of $10 billion or 25 percent of the remaining PPP funds for community financial institutions.
The bill also carves out 25% of the remaining funds to be used for nonprofits and 25% for small businesses with 10 or fewer employees, and makes it easier for borrowers with low-risk criminal histories to obtain PPP loans.
Demographic Data: The HEROES Act also requires demographic reporting by the Small Business Administration on PPP loans, and by HHS on COVID-19 cases in nursing homes.
For analysis of the bill, see the Washington Post, The Hill, the National Law Review (employee leave provisions summary), Center for Law and Social Policy (CLASP) (observing that the paid leave provisions remedy the previous exclusion of millions of workers), the House Committee on Small Business Fact Sheet, and UNCF.
