To date, RDF has received approval from the Small Business Administration for $9.2 million on 491 PPP loans. We are proud to help micro and small businesses across the nation allowing them to keep their doors open. On May 4, the SBA’s PPP funds ran out. As of May 17th, 5:01 pm we are no longer accepting applications.
RDF accepted applications for the Small Business Administration (SBA) Paycheck Protection Program (PPP) to incentivize small business owners to maintain their current employees on payroll, as well as provide support while navigating the impacts of the Coronavirus pandemic.
- Raza Development Fund is a Community Development Financial Institution certified by the US Treasury. As a CDFI, we pledge to serve low-income communities including small businesses and minority- and women-owned businesses.
- Our priority is focused on small businesses and non-profit organizations located in low-income communities and underserved areas fulfilling our mission of creating/preserving jobs in economically distressed communities.
RDF, as the largest Latino Community Development Financial Institution (CDFI) with more than $400 million in total assets under management, has provided capital to Latino-serving organizations nationwide. RDF currently maintains an AA(-) credit rating from S&P Global Ratings.
If your business or non-profit organization has been affected by the COVID-19 pandemic, the SBA PPP (Small Business Administration Paycheck Protection Program) loan could give you access to 2.5X your average monthly payroll in relief funds.
Eligible for forgiveness
- Loans forgiven for eligible payroll, utilities, rent, and mortgage interest. Any amount not forgiven will have a 1% interest rate, and monthly payments over a five-year period.
- For specific details visit the SBA.
Based on payroll
- Loans up to $10 million, with the max amount based on average monthly payroll x2.5.
- Payments on any amount not forgiven will be deferred for six months after loan is issued.
Eligibility For A PPP Loan:
- Small businesses that have less than 300 employees*.
- Private non-profit organizations, or 501(c)(19) veteran organizations that have been affected by the Coronavirus pandemic or 501(c)(6) (with 300 or fewer employees; some lobbying restrictions apply).
- Businesses and NFPs that undercalculated the 1st PPP loan and have not yet applied for loan forgiveness.
- Businesses that need 2nd PPP loan.
- 300 or fewer employees, including sole proprietors, independent contractors and self-employed, that have exhausted 1st PPP AND can verify a 25% gross revenue** decline in any 2020 quarter compared with the same quarter in 2019.
* Businesses must have been in operation on or before February 15, 2020.
* If they meet the SBA’s size standards, there are businesses in particular industries that may have more than 500 employees.
Updates to 2nd Round of Funding:
- Live venues, that may include performing arts organizations and cultural institutions may be eligible for $15 billion in dedicated grants.
- Landlords may be eligible for some rental loss assistance.
- Childcare businesses have been made eligible for part of a budgeted $10 billion in assistance.
- Business expenses paid with forgiven PPP loans and Economic Injury Disaster Loans (EIDL) are tax-deductible.
- There have been some tax credit and employee retention criteria changes.
What are the terms of a Paycheck Protection Program forgivable Loan:
- Loans will have a maturity of five years and an interest rate of 1%.
- Loans will be partially or fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities.
- At least 60% of the forgiven amount must have been used for payroll.
- Loan payments will be deferred for six months.
- No collateral or personal guarantees are required.
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
- Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.