I want to highlight a great development here in Indianapolis. The city of Indianapolis has approved allocating $25 million to fund federal paycheck protection program loans underwritten by the Indy Chamber. (Full disclosure: I am a consultant for the chamber).
The SBA’s forgivable Paycheck Protection Program was such a big hit that the loan funds were entirely allocated in short order. Congress just provided an additional allocation of funds, with $30 billion reserved for CDFI (community development financial institution) type lenders.
The Indy Chamber is an existing CDFI that was already making loans through its Rapid Response Loan fund. The city’s $25 million will significantly scale up this local effort by providing the initial capital needed to underwrite these loans.
These new PPP loans are being targeted as businesses with 50 or fewer employees and in amounts of $75,000 or less. So this program is directly targeted at true small businesses.
There’s definitely a lot of work still to do, but Indy is on the forefront of local communities mobilizing to help small businesses navigate through this crisis