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

Sep 21, 2022, 2:23 PM | Updated: 11:56 pm
Treasury Secretary Janet Yellen speaks after touring the IRS New Carrolton Federal Building, Thursd...

Treasury Secretary Janet Yellen speaks after touring the IRS New Carrolton Federal Building, Thursday, Sept. 15, 2022, in Lanham, Md. (AP Photo/Alex Brandon)

(AP Photo/Alex Brandon)

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 disbursed 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.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

FBI: Jetliner evacuated in Albuquerque after security threat

ALBUQUERQUE, N.M. (AP) — An American Airlines flight from Texas to New Mexico was evacuated Sunday after landing at the Albuquerque airport because of a security threat, authorities said. All 179 people aboard Flight 928 from Dallas-Fort Worth were taken off the jet in the morning at Albuquerque International Sunport and were bused to the […]
12 hours ago
Associated Press

Phone alerts responders after car hits tree, killing all 6

LINCOLN, Neb. (AP) — A passenger’s cellphone automatically alerted responders after a car hit a tree early Sunday in a Nebraska crash that killed all six of its young occupants, authorities said. Five men in the car died at the scene of the crash around 2:15 a.m. in Lincoln, about 3 miles east of the […]
12 hours ago
In this undated surveillance image released by the Stockton Police Department, a person is shown fr...
Associated Press

Killings of 5 men in California are related, police say

STOCKTON, Calif. (AP) — Rewards totaling $85,000 have been offered for information leading to an arrest in five fatal shootings since July in Stockton, California, that investigators believe are related, police said. After reviewing surveillance footage, detectives have located an unidentified “person of interest” in the killings, Stockton Police Chief Stanley McFadden wrote on the […]
12 hours ago
Associated Press

Tesla sales bounce back in Q3 but fall short of estimates

AUSTIN, Texas (AP) — Tesla’s sales rose 35% in the July-September period compared to the second quarter as the company’s huge factory in China got past supply chain issues and pandemic restrictions. The electric vehicle and solar panel company said Sunday it sold 343,830 cars and SUVs in the third quarter compared with 254,695 deliveries […]
12 hours ago
FILE - President Joe Biden drives a Cadillac Lyriq through the showroom during a tour at the Detroi...
Associated Press

Biden pledge to make federal fleet electric faces slow start

WASHINGTON (AP) — President Joe Biden, a self-described “car guy,” often promises to lead by example on climate change by moving swiftly to convert the sprawling U.S. government fleet to zero-emission electric vehicles. But efforts to eliminate gas-powered vehicles from the fleet have lagged. Biden last year directed the U.S. government to purchase only American-made, […]
12 hours ago
Associated Press

2 hurt when helicopter crashes in yard of California home

FRESNO, Calif. (AP) — A helicopter spun out of control and crashed in the front yard of a home in central California, hurting a pilot and passenger, authorities said. The helicopter clipped the edge of the house and sheared off the top of a palm tree before crashing and coming to rest on its side […]
12 hours ago

Sponsored Articles

...
SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
US has sent $8.28 billion in pandemic funds to local lenders